With such high costs, why do so many families still opt for a Single Family Office model?

The advantages of family offices are clear: Privacy. Customization. Control.

But these can come at a price. Salaries, tech, legal bills.

The dream of running your own shop often collides with the brutal economics of keeping it alive.

When many families realize their family office is actually eroding generational wealth, they often (quietly) shut them down or scale them back.

This week, we break down the real cost of running a family office, featuring the latest data from Goldman Sachs and Citi Private Bank.

This 1-2% number from the recent Citi 2025 Global Family Office Report is an all-in amount including external managers and advisors. Pure operating costs typically run 0.5%–1.5% of assets annually,

That means:

Even the wealthiest families have to ask if the control is worth that bill.

Here’s what Citi found when they asked families to reveal their cost base:

Operating Costs (Citi 2025)

Translation: about two-thirds of family offices are spending at least 0.5% a year. And one in four are pushing above 1%.

You might expect economies of scale, but Citi points out that larger offices experience scope creep as they expand their remit into philanthropy, next-gen education, and governance.

The scope of a family office is a key cost driver. Every new service (like a foundation, concierge, or complex reporting system) has a multiplier effect: extra legal work, new tech tools, ongoing monitoring. Without discipline, service creep can send costs spiraling.

The biggest line item is almost always people.

Staffing can eat 50–60% of the budget.

And yet, most family offices are small. Goldman Sachs and Citi agree that the average family office employs under 10 people.

Typical Staffing Levels (Goldman Sachs & Citi 2025)

So while the headlines feature sprawling offices with CIOs, CFOs, and in-house tax teams, the median office is lean: a handful of generalists, often supported by outsourced specialists.

But at the top end, staff lists can look like hedge funds:

Put that in London, New York, or Zurich, and salaries and bonuses alone can exceed $2M a year.

Complex portfolios add costs. Private equity, co-investments, and niche alternatives require more due diligence, more legal structuring, and pricier systems.

Basic ETFs can be tracked on Excel, but once you’re in direct deals, you usually need software to keep on top of it.

And there’s complexity around families too.

More members = more complexity: multiple ownership stakes, different reporting preferences, even conflict resolution and education programs. All of this adds to the budget.

Continue reading the full article for further considerations, including location, hidden risks and the one ratio that matters most…

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