Wealth transfer: Millennials to become richest generation in history
S E E D E D C O N T E N T
Published Thu, Feb 29 2024 8:22 AM EST
- A huge transfer of wealth will likely make millennials "the richest generation in history," according to a new report.
- The annual Wealth Report by global real estate consultancy Knight Frank, which will be released publicly in its detailed format next week, examines the latest trends in property and economics across the globe.
- Liam Bailey, global head of research at Knight Frank, said the wealth transfer is taking place amid "seismic changes" in how the assets are put to use.
Soaring rents, rising inflation and student debt are among some of the reasons millennials have struggled to purchase their own homes or build up their savings. Catherine Falls Commercial | Moment | Getty Images
A gigantic wealth transfer over roughly the next decade will likely make millennials "the richest generation in history," according to a report from global real estate consultancy Knight Frank.
The annual Wealth Report, which will be released publicly in its detailed format next week, examines the latest trends in property and economics across the globe.
It found that, over the next 20 years, the so-called silent generation — those typically born from 1928 to 1945 — and baby boomers — born between 1946 and 1964 — will "hand over the reins" to those born from 1981 to 1996 when they pass on their property- and equity-rich assets.
In the U.S. alone, Knight Frank said the shift would see $90 trillion of assets move between generations, "making affluent millennials the richest generation in history."
It comes at a time when research has shown that many millennials and Gen Z adults are having a tough time hitting the same milestones as those from previous generations — let alone finding room in their budgets to invest. Gen Z is generally defined as people born between 1996 and 2012.
Soaring rents, rising inflation and student debt have contributed to millennials' struggles to purchase their own homes or build up their savings. For several years, however, these conditions have fueled a narrative that millennials are lazy, avocado toast consumers that waste money on expensive coffee.
Liam Bailey, global head of research at Knight Frank, said that the wealth transfer is taking place amid "seismic changes" in how the assets are put to use.
Climate change, for example, is one area where there are clear generational differences in investment priorities.
"Millennials appear to have got the message when it comes to cutting consumption - 80% of male and 79% of female respondents say they are trying to shrink their carbon footprints," Bailey said.
In contrast, just 59% of male boomers were found to be trying to reduce their impact, significantly below their female peers, at 67%.
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Okay Boomer!
my corporate meteor daughter told me she wants another dog and a bigger house. I asked her to get one with a pool/guest house so that I could move into it and she wouldn't need to pester me continuously about my health.
Good luck with that. That is the old retirement plan for Italians. Have enough kids where they can take turns having their parents move in with them.
My kid is constantly trying to talk me into moving in so I can be full-time grampa daycare.
Yep.. free daycare. My daughter moved herself and her daughter back in with me for that. And the simple fact she had nowhere else to go and couldn't afford to live alone.
Ahh, the choices... but getting run over by a strong-willed 2yo can make some mornings rough.. LOL
We just took care of my 2 grandsons (almost 5 years and 16 months) for 3 nights while their parents went away. When they came back we said we loved it but 5 days would probably be our limit
My wife was lamenting last night, that I'm the fun one.
Interesting, but I thought that most people would be leaving their estates to their direct descendants which would be Gen X. With the exception of my youngest daughter, all other children are very comfortable with their careers and income levels and have all that they need. So I decided to leave my estate to my grandkids instead (Gen Z) as it would make a more meaningful impact on their lives. Of course I hope to live till I'm 100 and leave them all of an empty gum wrapper and a half-full bottle of water. hehe
Here is one you will like.
Born 1962, so that makes me a boomer, but I identify more with gen x.
This past dec, I took my first real out of the country vacation in 40 years, nothing fancy , just a week in Mexico on the southern gulf coast.
Christmas rolled around and I was talking to my youngest daughter, and she told me that my youngest had found out about my trip.
He proceeded to complain that I was wantonly and willingly squandering his inheritance.
I thought about that for a moment , and told her to tell him , since he and I are estranged, that I really enjoyed it and will likely be doing it again more frequently , because...I can, so I will.
This could get interesting now.
My children already know they will get nothing, unless I win the lottery.
I won't have anything to leave to my kids except maybe a house. They're actually doing better than I was at their age.