The Great Wealth Transfer: Europe’s €3.5 trillion shift

To unpack the deeper implications, we spoke with ING chief economist, Marieke Blom, and global head of Private Banking, Wealth Management & Investments, Anneka Treon.

Beyond the headlines: what’s really happening?

Over the past year, headlines have proclaimed “the greatest wealth transfer in history” and, in the United States, a “USD124 trillion windfall for younger generations.” But Marieke offers a more nuanced view saying “the GWT isn’t about creating new wealth. It’s about redistributing existing assets.”

“The real question is how that wealth will be used. The shape of wealth can change. From a house to euros, for example. And with Europe’s ageing population and shrinking workforce, this wealth is expected to be used more actively for daily expenses,” said Marieke.

Generational dynamics: more complex than they seem

While younger generations may be more inclined to invest the proceeds of the GWT, Marieke cautioned against generalisations.

“There’s no single story across European countries. In fact, differences within generations, are often greater than those between them.”

She added, “Typically, children will be nearing retirement themselves by the time they receive an inheritance. So, while the propensity to consume may be slightly higher among younger recipients, we’re often talking about people who are already around 65.”

Marieke also highlights potential downsides saying wealth inequality may increase, depending on how these assets are taxed by governments. And house prices could rise in areas with limited supply, while coming down elsewhere.

“Parents often leave behind a home that must be sold, and the impact on house prices will vary. Think rural Italy versus Amsterdam city centre. For prices of consumer goods, a surge in spending could theoretically trigger inflation, but for inheritances the process is gradual. I don’t expect major shocks.”

Europe’s investment gap: a missed opportunity?

Anneka, who oversees more than five million investing clients with over EUR260 billion of invested assets, agreed that regional and cultural differences are shaping how the GWT unfolds. One of the most striking contrasts, she said, is how Europe invests compared to the US.

“While over half of US household assets are invested in capital markets, less than one-fifth are in Europe. Much of Europe’s wealth still sits in low-yield bank deposits. This limited use of capital markets is increasingly unsustainable, especially with ageing populations and growing pension gaps. Reliance on government support alone is no longer viable,” she said.

Marieke added, “Europe saves a lot of its income in bank accounts. If that were to shift toward more investment, it could benefit the economy. There’s untapped potential here.”

A catalyst for change

While the macroeconomic effects may be gradual, Anneka sees the GWT as a powerful catalyst for change in banking.

“This shift brings a responsibility for banks, like ING, to get even more personal guiding clients across all wealth categories through life’s pivotal moments,” said Anneka.

“What’s appropriate, what’s wise, and what aligns with their values and long-term ambitions.”

Anneka said she had empathy for those inheriting wealth saying it is easy to be overwhelmed and stressed with this new responsibility.

“All of a sudden recipients need to educate themselves about financial wealth and planning. This is not something they learn at school. It is hard to find a trustworthy voice in the market because there is so much noise around making fast money and less about long-term financial wealth compounding.”

She said private banks are already adapting to meet the needs of clients who are capital-rich but increasingly time-poor with expectations that go far beyond traditional wealth management.

She noted that there is also a gap in the market for those that are less wealthy and don’t have private banks guiding them.

“It’s our responsibility to guide the less wealthy through education, financial and goals planning,” said Anneka.

Generation next

Anneka noted that the GWT is also reshaping how banks attract and retain the next generation of wealth holders.

“Clients expect frictionless digital experiences yet deeply value human guidance - whether it’s selling a business, coping with the loss of a parent, or shaping a legacy. Meeting these needs requires a hybrid service model that blends intelligent digital tools with empathetic, expert advice. From dynamic financial planning to innovative inheritance strategies like generational mortgages.”

“Ultimately, this is more than a transfer of assets. It’s a transfer of trust, values, and expectations. To truly connect with the next generation, we must move from head to heart. Institutions that bridge this digital-emotional divide will be best positioned to build lasting relationships through this historic transition.”

Anneka emphasised the role of Europe’s investment community in the GWT which she said wasn’t as advanced as that of the US.

“We have a critical role to play in educating, advising, and empowering clients to make informed decisions that benefit both their futures and the broader economy,” she said.


* Based on 2025 report by Addepar on wealth transfer trends across EMEA.