A notable number of affluent millennials have recently shifted their primary tax residences or are planning to do so,presenting a considerable challenge for wealth management firms aiming to maintain their younger clientele.

According to a 2025 survey by consultancy Capgemini, which polled 3,400 individuals aged 28-43, a quarter of millennials possessing over $1 million in investable assets reported relocating in 2024, with an additional quarter intending to move in 2025.

the increasing international mobility among wealthy younger individuals poses a threat to wealth managers, who risk losing established client relationships when these individuals move abroad.

Warren Thompson, managing director in the family office team at private bank Coutts, noted that “the next generation . . . are more internationally mobile than they’ve ever been before”.

Gen Z exhibits similar mobility patterns, with half of respondents aged 12-27 indicating they either moved in the past year or plan to do so this year, as revealed in Capgemini’s survey of wealthy individuals.

Wealth managers often face difficulties in retaining long-term clients when assets are transferred to the next generation, with many opting to sever ties with their parents’ advisors, even without relocating.

The Capgemini survey indicated that 81 per cent of those poised to inherit wealth intend “to switch their parents’ wealth management firm within one to two years after inheritance”.

“Keeping money in the same place where it grew is no longer the case for the next generation,” said Elias Ghanem, global head of the Capgemini Research Institute for Financial Services, adding that many younger clients “won’t be doing what their parents have been doing” with their wealth.

Adapting to Change

“It’s very common for us to send multigenerational teams to face off against multigenerational clients,”

In an effort to attract and retain business from younger generations,wealth managers and advisors are implementing new strategies.

these strategies involve offering greater access to crypto assets, developing AI-driven digital platforms, and enhancing the quality of relationship managers, according to a recent Capgemini report.

Ghanem emphasized the “urgency” for wealth managers to rapidly modernize their business models to retain millennial clients.

James Morrell, deputy chief executive of Rothschild & Co’s UK wealth management business, stated that the bank employs younger advisors to better connect with younger clients. “It’s very common for us to send multigenerational teams to face off against multigenerational clients,” he said.

Rothschild is also “spending quite a lot of time and money trying to incorporate AI” into its operations, he added.

Priyanka Hindocha,head of the UK family office division at wealth manager Stonehage Fleming,mentioned that her company hosts a “next gen” program where heirs learn about finance and network with peers.

Wealth managers have noted that some individuals who relocate do not always transfer their assets. An executive at a major UK asset manager mentioned that many wealthy individuals leaving the UK due to changes in the country’s non-dom tax regime have left ample assets with British managers.