The number of millionaires in Luxembourg fell significantly in 2024, but those at the top of the wealth pyramid continued to grow their fortunes.
According to the newly published World Wealth Report 2025 by Capgemini, the Grand Duchy saw a 7.5 percent drop in its population of high-net-worth individuals (HNWIs). That is the steepest decline among Western European countries covered in the report.
By the end of 2024, Luxembourg counted approximately 10,300 HNWIs, down from 11,100 the year before, according to local data from the Capgemini report. Despite this decline, the number of ultra-high-net-worth individuals (UHNWIs) — those with more than 30 million US dollars in investable assets — rose by 3.5 percent across Europe, pointing to an ongoing concentration of wealth among the richest.
Luxembourg’s declining millionaire population contrasts with more modest declines in neighbouring countries. Belgium saw a 2.5 percent decrease in HNWIs to 134,600, while the Netherlands experienced only a slight decline of 0.2 percent, bringing its total to just under 335,000. Yet in both countries, the number of UHNWIs grew — by 6.3 percent in Belgium and 3.5 percent in the Netherlands — reinforcing the pattern of diverging fortunes.
Concentration at the top
“2024 was marked by wealth concentration,” said Iben Lambrechts, managing consultant at Capgemini Financial Services, in a statement. “It was primarily the ultra-wealthy who managed to grow their assets further, while millionaires in the lower wealth brackets saw little or no gains.”
The report highlights a widening gap within the HNWI segment itself. So-called Millionaires Next Door — those with investable assets between 1 and 5 million dollars — proved most vulnerable to market fluctuations. With less diversified portfolios, often tied more heavily to fixed income and real estate, this group experienced weaker returns compared to those with larger and more alternative-rich asset mixes.
Meanwhile, ultra-wealthy individuals benefited from the bull market in US tech stocks and strong valuations in private equity and other alternative investments. Globally, wealthy individuals now allocate about 15 percent of their portfolios to alternative assets such as crypto, a notable rise compared to previous years.
Knock-on effects hit Luxembourg
Capgemini analysts suggested that Luxembourg’s sharper decline may be linked to its open, globally exposed financial sector and the knock-on effects of higher interest rates on real estate and private banking portfolios.
North America was the strongest performer in 2024, with a 7.3 percent increase in HNWIs, buoyed by resilient equity markets and optimism around artificial intelligence. In Asia-Pacific, the HNWI population grew by 2.7 percent, with strong gains in India and Japan, though China registered a slight decline.
By contrast, Latin America and the Middle East saw sharp contractions in their millionaire populations, down 8.5 percent and 2.1 percent respectively, amid economic headwinds and falling energy prices.
Pressed to upgrade
Another key finding: wealth management firms across Europe, including in Luxembourg, are under pressure to upgrade their digital capabilities. According to the report, 69 percent of Dutch relationship managers are dissatisfied with their firm’s digital tools, well above the global average of 47 percent. Though Luxembourg was not singled out in this category, similar concerns have been echoed anecdotally in industry circles.
Meanwhile, 63 percent of younger HNW clients say they would follow their relationship manager to a new firm if they switched jobs. Capgemini concluded that loyalty among wealthy clients is increasingly driven by personal connections, instead of institutional reputation.
Capgemini’s message for private banks and family offices is clear: evolve or risk losing relevance. Younger generations of wealthy clients expect seamless digital interaction, tailored services, and exposure to emerging financial centres like Singapore and Dubai. For firms based in Luxembourg, a traditionally conservative wealth hub, that means modernisation is no longer optional.