Is Luxembourg still Europe’s wealth capital?

The 2025 EY Global Wealth Research Report surveyed 3,600 individuals across 27 markets. A small but significant sample from Luxembourg was included. How does the Grand Duchy compare? 

Readiness for intergenerational wealth transfer

Forty-three percent (43%) of investors in Luxembourg feel well-prepared to transfer their wealth across generations (vs. 40% at the European level), while 17% have already done so, compared to just 6% across Europe. Priorities are clear: 44% plan to fund education, while 38% intend to either maintain investments or diversify them.

However, only 17% of investors strongly feel their financial advisor has adequately engaged their family in financial planning. Moreover, fewer than 20% have discussed specific products of interest with their advisor – only 18% mentioned digital assets and 16% alternative investments, while 12% noted their financial advisor has not discussed any products of interest with them.

Rising complexity is reshaping investor confidence

Almost two-thirds (60%) of Luxembourg respondents say their investment needs are more complex today, higher than 54% in Europe and 45% globally. Perhaps unsurprisingly, confidence has dropped: only 58% of Luxembourg clients feel well prepared to meet their financial goals, down from 74% in 2021. That said, they still outperform the 50% average across Europe.

Stability wins: large institutions are gaining ground

Luxembourg investors continue to favor scale and security. Over half (57%) prefer full-service institutions (albeit a drop from the 78% in 2023), and 40% opt for commercial or retail banks (a stark increase from the 15% in 2023) – reflecting a shift toward more established players.

Alternatives appeal - but only with clarity

Luxembourg investors show outsized interest in alternative assets. Three-quarters (74%) are invested in real estate (vs. 59% in Europe), and 89% are invested in or exploring fund-of-funds (vs. 61% Europe-wide). Additionally, digital assets are increasingly attractive to Luxembourg clients, with 38% planning to invest – higher than most of Europe. Still, they are cautious: 45% flag unclear risk-return profiles, and 40% cite high risk. 

Passive strategies and purpose-led investing remain strong

Sixty-two percent (62%) of Luxembourg investors are interested in passive investments like ETFs and index funds (vs. 56% in Europe). Life insurance remains popular at 57%, a nod to long-term, risk-managed planning. Clients are also signaling stronger interest in ESG and impact investments – aligning wealth with personal values while mitigating risk.

AI is welcome, but trust remains with human advisors

Comfort with AI is growing: 70% of Luxembourg investors are open to AI-driven advice, and 51% accept AI-led financial planning – higher than the European average. But trust has its limits: 66% still trust human advisors more, while only 21% trust AI tools equally. The message is clear: AI is a complement, not a replacement.

Compared to their European counterparts, Luxembourgers are invested in alternatives, more open to innovation, and more committed to long-term planning. For wealth managers, there is a clear opportunity: provide clients with insights about the products they are interested in. And deliver solutions that combine digital intelligence and assets with personal trust. 

To read the full report, with a detailed dive into Luxembourg’s responses, click here.