Wealth Management

Despite concerns about industry competition (including from established financial institutions and new entrants.), stock market volatility, growing regulatory scrutiny, an increased number of mergers, and cyber security threats, the wealth management industry is growing. “Wealth management remains a sector with enduring growth potential, playing a pivotal role in the financial well-being of an increasingly wide range of customers,” according to the professional services firm KMPG.

The following statistics from Wealth X, Capgemini, Barron’s, Hurun Global Rich List, Research and Markets, Forbes, Thinking Ahead Institute, and Pensions & Investments back up the predictions of a healthy future for the industry (especially in the United States):

• Global assets under management are expected to increase from $131 trillion in 2021 to $160 trillion by 2029.
• In 2022, the United States had the highest number (129,665) of UHNW individuals, followed by China (47,190), Germany (19,590), Japan (14,940), United Kingdom (14,005), Canada (13,320), Hong Kong (12,615), France (11,980), Italy (8,930), and India (8,880).
• The worldwide billionaire population reached 3,279 in 2024, up from 3,112 in 2023. The billionaires’ total wealth (based on their net worth as of January 15) was $15 trillion. This was more than the GDP of any country other than the U.S. and China.
• In the United States and Canada, high-net-worth individuals had $83 trillion in assets at the end of 2022, up from nearly $21.7 trillion in 2019.
• The number of U.S. households with a net worth of $1 million reached nearly 22 million in 2023.

Job opportunities for personal financial advisors (including those who work as wealth managers) who are employed by companies that manage funds, trusts, and other financial vehicles are expected to increase by 17.5 percent from 2022 to 2032, according to the U.S. Department of Labor (DOL), or much faster than the average for all careers. Investment products are becoming more complex and constantly increasing in number and variety, which will require the expertise of skilled wealth managers. The DOL reports that the “emergence of robo-advisors…may partially temper demand for personal financial advisors. However, the impact of this technology should be limited as consumers continue turning to human advisors for more complex and specialized investment advice over the projections decade.” Employment for financial analysts who work for companies that manage funds, trusts, and other financial vehicles will increase by 23.4 percent (much faster than the average).

A growing emphasis on cybersecurity and competition among wealth management firms for clients has prompted growth in other related careers. Private Asset Management (PAM) reports that demand is growing for chief operating officers at smaller firms to tackle tasks that chief executive officers and other top management officials are either too busy or unwilling to handle. More firms are hiring branding and marketing experts to help them stand out from their competitors. PAM also reports that the position of chief information security officer (CISO) is becoming more common at large wealth management firms and multifamily offices. Opportunities should also be strong for information security analysts. The DOL predicts that employment in this career field will grow by 32 percent from 2022 to 2032.

Data analytics and predictive modeling will continue to play a key role in the wealth management industry. “As the use of Big Data grows, top candidates for financial services jobs must possess not only traditional finance knowledge, but also technology skills,” according to Robert Half’s Salary Guide for Accounting & Finance Professionals. The staffing firm reports that 42 percent of hiring managers surveyed said that they increase salaries for candidates with strong financial modeling skills. Thirty-six percent of respondents said that they would do so for candidates with top-notch data analytics skills. Additionally, the U.S. Department of Labor reports that employment for data scientists who work for companies that engage in securities, commodity contracts, fund, trusts and other financial investments and vehicles and related activities will grow by 33.8 percent from 2022 to 2032. This is much faster than the average for all careers.

Wealth management firms will continue to be needed to meet the needs of high-net-worth individuals (HNWIs), some of whom do not have a clear strategy for preserving and growing their wealth. In fact, 47 percent of U.S. adults aged 18+ with more than $1 million in investable assets said that their financial planning skills still needed improvement, according to Northwestern Mutual’s 2023 Planning & Progress Study. Thirty-three percent said that it was possible that they could outlive their savings.

One major trend that will fuel employment growth for financial advisors is the aging of the planner workforce. In 2023, the research firm Cerulli Associates predicted that more than 109,000 advisors (representing 38 percent of industry head count and 42 percent of assets) will likely retire over the course of the next decade. As these financial planners retire or scale back their workloads, demand is expected to increase for experienced, highly skilled advisors.