Changing investor demographics and preferences are reshaping firms' approach to serving a growing population of wealthy households. With the $105 trillion intergenerational wealth transfer gaining momentum and greatly influencing the market, wealth managers need to adapt their services to better meet the demands of high-net-worth (HNW) investors, according to the latest Cerulli Edge—U.S. Advisor Edition.

Wealth creation and concentration among HNW households have surged in recent years, leading to an industry-wide focus on capturing HNW assets by moving upmarket. By 2028, Cerulli projects the total advisor-managed HNW industry will surpass $30 trillion in assets under management (AUM), with an expected annual growth rate of about 9.3%.

“Across the wealth management industry, the climate is ripe for practices looking to move upmarket, and firms are making this move by investing in and expanding their service offerings,” says Andrew Larsen, wealth management analyst. “HNW investor-focused practices, sensing the growing value of both attracting new wealthy clients and retaining current premier clients, have been adding more comprehensive services at a rapid pace over the past several years to accommodate their clients’ nuanced needs.”

Among wealth managers focused on serving HNW investors, an average of 12 services in 2024 are offered, up from 10 in 2017. While the most common services offered are asset allocation (95%), basic financial planning (89%), and cash management (84%), a select cohort of services has seen particularly wide adoption compared to others in recent years.

In 2017, fewer than half of HNW practices offered trust administration and trustee services (42%) and private banking services (34%). In 2024, their use jumped to 61% and 59%, respectively. Moreover, in 2017, 56% of HNW practices offered estate planning services in-house; by 2024, that share had grown to 73%. Tax planning, preparation, and compliance services also have grown in adoption, from 29% of HNW practices in 2017 to 38% in 2024.

“Wealthy investors have more complex service demands than the average client, and these needs are a deciding factor in their choice of advisor,” says Larsen. “Advisors must deliver a ‘white glove experience’ and superior levels of service across every aspect of the client service spectrum. Practices that can meet these service needs with a strategy for reliably scaling them will have more success attracting HNW clients—and gaining their trust,” he concludes.