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high-net-worth individuals
Also known as: HNWI, high-net-worth
Facts (62)
Sources
An Exploratory Study of the Wealthy's Investment Beliefs ... financialplanningassociation.org Mar 1, 2025 36 facts
claimHigh-net-worth individuals globally identified the stock market, inflation, and rising interest rates as their top financial worries.
claimHigh-net-worth individuals who avoid financial advisers often do so because they are confident in their ability to manage their own investments and may not appreciate the emotional support advisers provide.
claimThe primary source of wealth for high-net-worth individuals appears to be self-made rather than received through generational transfer, according to Leckelt et al. (2019).
measurementIn the study, 84 percent of high-net-worth individuals were interested in building their financial education, yet only 54 percent were receiving financial education from their adviser.
measurement42% of high-net-worth individuals describe themselves as highly diligent planners, and 35% describe themselves as diligent planners.
claimThere were no discernible differences in rebalancing behaviors between high-net-worth and affluent respondents in the study.
claimThree-quarters of the younger cohort of high-net-worth individuals believe it is no longer possible to achieve above-average returns using only traditional stocks and bonds.
claimHigh-net-worth individuals are more likely to have a formal written financial plan and rely on a financial adviser than affluent individuals.
measurementOnly 24 percent of high-net-worth individuals classified themselves as passive investors.
procedureFinancial advisers working with high-net-worth clients should enhance awareness of separately managed accounts and alternative investments, temper investment overconfidence, build financial literacy, proactively rebalance portfolios, and promote the non-financial benefits of professional advice.
claimHigh-net-worth individuals often have high levels of career success in their chosen fields, which may lead them to mistakenly believe their professional traits are transferable to successful investing.
claimHigh-net-worth individuals tend to report significantly higher levels of self-assessed financial knowledge, according to Klontz et al. (2015).
referenceM. Leckelt, D. Richter, C. Schröder, A. C. P. Küfner, M. M. Grabka, and M. D. Back published 'The Rich Are Different: Unravelling the Perceived and Self-Reported Personality Profiles of High-Net-Worth Individuals' in the British Journal of Psychology in 2019.
claimKlontz et al. (2015) found that high-net-worth individuals are more likely to display overconfidence by believing they are better-than-average investors and admitting to having made one or more investment mistakes.
claimHigh-net-worth individuals are prone to the same cognitive errors and emotional biases as other investors, despite having higher self-assessed financial knowledge.
claimHigh-net-worth individuals are no less likely to avoid investment mistakes than affluent individuals, despite having higher levels of self-assessed financial knowledge.
claimIncorporating Environmental, Social, and Governance (ESG) factors into financial decision-making does not appear important to high-net-worth individuals.
claimBank of America (2023) reported that investment holdings among high-net-worth individuals vary based on age.
claimHigh-net-worth individuals frequently cite coordination with CPAs and outside advisers, as well as keeping emotions in check, as key services provided by financial advisers.
measurementAs of 2022, there were 7.4 million high-net-worth individuals in North America, representing $25.6 trillion in investable assets, according to Capgemini (2023).
measurementThe average allocation to alternative investments is 16 percent among the younger cohort of high-net-worth individuals, compared to 5 percent for respondents ages 43 and older.
claimFinancial advisers often assist high-net-worth individuals in managing emotions related to complex planning needs, such as divesting concentrated stock positions or planning for the succession of a family-owned business.
measurementAccording to Cerulli (2022), the top three factors high-net-worth individuals value in an adviser relationship are: understanding needs, goals, and risk tolerance (76 percent); providing transparency (76 percent); and explaining financial analysis clearly (75 percent).
measurement93 percent of high-net-worth respondents owned individual stocks, compared to a 52 percent participation rate in the 2016 Survey of Consumer Finances (SCF) population.
claimHigh-net-worth individuals tend to have higher levels of financial satisfaction and lower levels of financial stress compared to affluent individuals, according to Klontz et al. (2015).
claimHigh-net-worth individuals typically possess more complex financial situations than affluent individuals, necessitating the assistance of attorneys, CPAs, and other professionals.
referenceNorthwestern Mutual published the '2023 Planning & Progress Study: High Net Worth' in 2023.
measurementThe average portfolio allocation to cryptocurrency among high-net-worth individuals is 3 percent, but it is 15 percent for respondents between ages 21 and 42.
claimHigh-net-worth individuals report a lower ownership percentage of cryptocurrency, which aligns with the fact that most cryptocurrency demand comes from younger investors who represent a small portion of the high-net-worth market, according to Bank of America (2023).
measurementOnly 26 percent of high-net-worth respondents report owning separately managed accounts, and 19 percent report owning alternative investments.
claimHigh-net-worth individuals possess significantly higher levels of internal locus of control, which is measured in part by their confidence in solving problems and achieving goals.
measurementOnly 45 percent of high-net-worth individuals proactively rebalance their portfolios annually.
claimEnvestnet (2023) found that high-net-worth individuals value financial advisers for helping them remain focused on the long term during market fluctuations, providing peace of mind, and reducing stress and anxiety.
claimThe study defined high-net-worth individuals as those possessing investable assets of at least $1 million.
referenceCapgemini (2023) defines 'high-net-worth' individuals as those with investable assets of $1 million or greater, and 'affluent' individuals as those with investable assets between $250,000 and $999,999.
measurement63 percent of global high-net-worth individuals planned to increase equity investments over the next 12 months, with one-third of that group citing favorable valuations as the reason.
Private Wealth Migration 2025 | Press Release - Henley & Partners henleyglobal.com Jun 24, 2025 25 facts
measurementLebanon is expected to see a net outflow of 200 high-net-worth individuals in 2025, with many relocating to Cyprus, Greece, and the UAE.
measurementVietnam is projected to see a net outflow of 300 high-net-worth individuals in 2025.
measurementCanada is expected to have a net inflow of 1,000 high-net-worth individuals in 2025.
measurementThe United Kingdom is projected to experience a net loss of 16,500 high-net-worth individuals in 2025, marking a shift from being a net magnet to a net exporter of wealth since the 2016 Brexit vote.
claimAffluent individuals are relocating from the United Kingdom to tax-friendly jurisdictions including the UAE, Monaco, and Malta, as well as lifestyle havens such as Italy, Greece, Portugal, and Switzerland.
measurementIreland, Norway, and Sweden are projected to see net high-net-worth individual losses of 100, 150, and 50 millionaires, respectively, in 2025.
measurementFrance, Spain, and Germany are expected to see net high-net-worth individual losses in 2025, with projected net outflows of 800, 500, and 400 millionaires, respectively.
claimPopular destinations for high-net-worth individuals departing from Brazil and Colombia include the United States (specifically Florida), Portugal, the Cayman Islands, Costa Rica, and Panama.
claimOutflows of high-net-worth individuals from India and South Africa are being partially offset by the return of wealthy individuals from the United Kingdom.
measurementThailand is expected to have a net inflow of 450 high-net-worth individuals in 2025.
measurementIran is expected to see a net outflow of 200 high-net-worth individuals to the UAE in 2025.
measurementAustralia is expected to have a net inflow of 1,000 high-net-worth individuals in 2025.
measurementCosta Rica (+350), Panama (+300), the Cayman Islands (+200), and Bermuda (+50) are projected to attract record numbers of high-net-worth individuals in 2025.
measurementBrazil is expected to see a net outflow of 1,200 high-net-worth individuals in 2025.
measurementSouth Korea is expected to see a net outflow of 2,400 high-net-worth individuals in 2025, more than double the figure from 2024.
measurementPakistan is projected to see a net outflow of 100 high-net-worth individuals to the UAE in 2025.
measurementIsrael is expected to see a net outflow of 350 high-net-worth individuals in 2025, primarily to the United States.
measurementSingapore is expected to have a net inflow of 1,600 high-net-worth individuals in 2025.
measurementLatvia experienced 70% millionaire growth between 2014 and 2024 and is projected to have a net inflow of 100 high-net-worth individuals in 2025.
measurementThe United Kingdom is forecast to experience a net outflow of 16,500 millionaires in 2025, the largest net outflow of high-net-worth individuals by any country since Henley & Partners and New World Wealth began tracking this data.
measurementTaiwan is projected to see a net outflow of 100 high-net-worth individuals in 2025, despite having experienced 65% millionaire growth over the previous decade.
measurementNew Zealand is expected to have a net inflow of 150 high-net-worth individuals in 2025.
measurementIn 2025, China is projected to have a net loss of 7,800 high-net-worth individuals, India a net loss of 3,500, Russia a net loss of 1,500, and South Africa a net loss of 250.
measurementMorocco (+100), Mauritius (+100), and the Seychelles (+50) are projected to attract record numbers of high-net-worth individuals in 2025.
measurementColombia is expected to see a net outflow of 150 high-net-worth individuals in 2025.
High Net-Worth Individuals: The Challenge for Tax ... researchgate.net 1 fact
referenceThe article titled 'High Net-Worth Individuals: The Challenge for Tax Administrations, Financial Intelligence Units and Law Enforcement Agencies' examines the challenges faced by tax administrations, financial intelligence units, and law enforcement agencies worldwide regarding high-net-worth individuals.