An entire generation of Australians will become instant millionaires without lifting a finger in the coming years, but they’ll spend their wealth much differently compared with other age groups.

That was a finding of the World Wealth Report 2025 by technology and consulting firm Capgemini released today, examining the value of high net worth individuals (HNWIs) and how they’ll spend their inheritance.

In Australia, the number of HNWIs has risen by 0.5 per cent to 334,800 individuals who are worth more than $US1 trillion combined.

From these, there were 30,240 individuals known as “mid-tier millionaires”, worth between $US5 million ($7.7 million) to $US3 million, and 2450 with more than $US30 million.

Within the next 20 years across Australia, they will drive a huge transfer of wealth.

By 2030 in Australia, 22 per cent of HNWIs will receive an inheritance, rising to 69 per cent in 2035 and 80 per cent by 2040.

That will mirror a trend across the world involving an unprecedented transfer of wealth to Gen X, millennials, and Gen Z, or next-gen investors.

The report said $US83.5 trillion will change hands over the next two decades, creating the next generation of HNWIs.

But they have far different expectations about investing their money compared with previous generations.

They are willing to take more risks to expand their wealth, including investing in private equity and cryptocurrencies, the report says.

“The great wealth transfer will be a defining moment for the industry,” the chief executive of Capgemini’s Financial Services Strategic Business Unit, Kartik Ramakrishnan, said.

“Despite global wealth on the rise, 81 per cent of inheritors plan to switch firms within one to two years of inheritance.

“Potentially losing these unsatisfied clients is going to create significant risk for the global wealth management sector.”