Future-proofing wealth by investing in tomorrow’s people

We are in the midst of the largest wealth transfer in history: nearly $124tn will change hands before 2048, with Millennials and Gen Z set to inherit the lion’s share. These generations are digital-first, values-driven, and increasingly attentive to how their capital shapes the world.

According to a report by Bank of America, 82 per cent of next-generation investors factor environmental, social and governance (ESG) considerations into their decisions

Much of this focus has been channelled into climate solutions, and rightly so. But for wealth managers, the future of work is an equally urgent and under-recognised frontier. 

The US labour market is under strain. According to new 2024 data from Oxfam, more than 39m Americans earn less than $17 an hour. That’s nearly one in four workers — a full 23 per cent of the US workforce — struggling to get by on low wages.

AI could impact nearly 50m entry-level jobs in the US, disproportionately filled by young workers. 

These gaps create not just social challenges, but financial risks. Weak consumer demand, growing inequality and underprepared workforces directly translate into slower growth, diminished innovation and more volatile markets. In short, ignoring the workforce is ignoring a core driver of portfolio performance.

But the consequences extend beyond the economy. History shows that when large segments of society are locked out of opportunity — when wages stagnate, jobs vanish and inequality widens — the result is not just slower growth, but heightened instability.

Economic dislocation fuels political polarisation, unrest and in the worst cases, conflict. For investors and wealth managers navigating the largest intergenerational wealth transfer in history, recognising the link between workforce resilience and global stability is not a moral choice alone; it is a financial imperative.

Workforce innovation

Directing capital into workforce solutions is not philanthropy. It is a strategy. Companies that invest in human capital consistently see gains in productivity, innovation and competitiveness. Economies with resilient, adaptable workers are better positioned to withstand automation shocks and global downturns. For wealth managers, that means more stable returns and stronger long-term growth.

It is vital for portfolio managers to meet this challenge head-on, identifying opportunities to invest in scalable start-ups that expand access to skills, career pathways and workplace equity. These aren’t just socially beneficial investments. They also represent an overlooked market with enormous potential. Investors are keen to align with the values of a new generation while capturing strong returns in a sector primed for outsized growth.

One example is Pace AI, whose mission is to unlock economic opportunities for the 80 per cent of the global workforce who are frontline working adult learners — more than one-third of whom have learned English as a second language (ESL), are educated to General Educational Development (GED) certificate level or are low-literacy learners.

Pace’s AI integrates with organisation-specific materials to make on-the-job training more accessible, offering scaffolded AI tutoring and supporting context-relevant language acquisition.

Another is Manifest, an AI-powered business companion that helps small and medium-sized business owners launch, grow, and scale their companies. Its product suite combines AI-driven upskilling, training and real-time business intelligence tailored to verticals as diverse as pet care, salons and funeral homes.

These companies represent a new class of solutions reaching millions of Americans earning less than $45,000 annually. It is a market that is both vast and underserved.

Generational mandate

The Great Wealth Transfer is more than a demographic milestone. It is a mandate to redefine what wealth stewardship means. Tomorrow’s investors are not asking whether their portfolios can make an impact; they are asking where that impact will be greatest.

For wealth managers, the choice is clear: future-proofing wealth means investing in both the planet and the workforce. Funds that specialise in workforce innovation offer a proven, efficient way to do so, delivering returns while helping build a more resilient economy.

Sabari Raja is a managing partner of JFFVentures