A windfall is set to fall into the laps of millennials over the course of the coming decades, a new report suggests, shifting the power dynamic in the economy away from boomers.
That’s according to property broker Knight Frank’s 2024 Wealth Report released this week, which reveals that over the next 20 years, $90 trillion in assets will betransferred between generations in the U.S. alone. By Knight Frank’s estimation, this shift will make affluent millennials “the richest generation in history.”
Previous reports show this figure at a lower $84 trillion, but nonetheless confirm a shake-up in the foundations of spending power across the globe.
Indeed, millennials are expected to befive times richer in 2030than they were approaching the beginning of thedecade, courtesy of the Great Wealth Transfer—but it hasn’t been an easy road for them thus far.
Millennials are among those who have been hardest hit by an increasingly inaccessible housing market—with Redfin finding that empty nesters own twice as many large homes as millennials with kids—as well as a jobs market irreversibly altered by a global pandemic.
Moreover, they’re dealing with crippling student debt, are facing down becoming a “sandwich generation” paying for both adult children and aging parents, and have long been told how lazy they are.
It’s perhaps no surprise, then, that a 2022 report fromAlliant Credit Unionfound that 53% of millennials are waiting on an inheritance of at least $350,000 from their parents—though their boomer parents say they intend to leave $250,000 or less.
“There is evidence that the youth of today blame the generations before them for the challenges that they and the planet face today,” said Mike Pickett, director of London-based Cazenove Capital, in the report.
Housing focus
The property broker added that housing will continue to be a focus of spending for the next generation, as those born between 1981 and 1996 may have struggled to get on the housing ladder thus far. Even at the highest end of the income ladder, growing a property portfolio is a key concern among those born between 1981 and 1996.
The study shows 23% of female ultra-high-net-worth individuals (UHNWI, valued at $30 million or above) are considering buying a home in 2024, with 21% of male UHNWI expecting to make a similar purchase this year. Wealthy Gen Zers feel the same, with 20% of those born from the mid-1990s to the early 2000s planning an acquisition.
But unlike those before them, younger buyers don’t see housing as a way to make money. “I don’t think younger generations see residential property as a route to wealth creation in the same way as boomers or Gen X,” said Mike Pickett, director of London-based Cazenove Capital.
He added: “In particular, the low interest rate environment and impressive growth in house prices of the past 15 years is unlikely to be repeated in the next 15. I also think there is some evidence that Gen Z may be happier to rent property or lease assets such as cars, and to adopt subscription-led lifestyles.”
Reaching the 1%
And if you’re hoping to reach the lofty heights of the richest 1% in the U.S. you need $700,000 more than last year.
The report found that breaking into the world’s top-one-percent club is getting more difficult every year. In the U.S. in 2023, individuals needed a net worth of $5.1 million to be considered in the richest echelons of society. By 2024 this figure rose to more than $5.8 million, an increase of approximately 14%.
But Americans determined to make the cut won’t need as much wealth as they would in other countries. Monaco, for example, requires a net worth of $12.88 million to “join the club,” an increase from $12.4 million last year.
However, making it into the 1% club doesn’t guarantee a spot in the VIP section: ultra-high net worth (UHNW). UHNW individuals need to have $30 million to their name in order to be considered in the pack—a figure well above the 1% for most nations.
Those in this illustrious group have also seen their net worth climb higher in the past year, with the AI boom helping the world’s richest add $150 billion to their portfolios.
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FAQs
Millennials are set to inherit as much as $90 trillion in assets before 2044, a new report shows. Many millennials are currently grasping in frustration at long-held American Dreams like homeownership, a steady job and an affordable cost of living.
Do Millennials stand to become the richest generation in history after $90 trillion wealth transfer? ›
The report said an estimated $90 trillion of assets will change hands, “making affluent millennials the richest generation in history.” For generations who stand to do the inheriting, it may be a much-needed injection of cash.
What percentage of the US wealth is owned by Millennials? ›
In comparison, millennials own around 9.2 percent of total wealth in the U.S. In terms of population distribution, there is almost an equal share of millennials and baby boomers in the United States.
Which generation is going to be the richest? ›
Millennials could stand to inherit trillions worth of property and property assets passed down by ancestors in the next 20 years. Millennials could potentially become the wealthiest generation ever, according to estate agent Knight Frank's 2024 Wealth Report.
What is the greatest transfer of wealth in history? ›
Baby boomers and the silent generation will bequest a total of $84.4 trillion in assets through to 2045, with $72.6 trillion going directly to heirs. The transfer of wealth from baby boomers will account for $53 trillion or 63% of all transfers, while the Silent Generation will hand down $15.8 trillion.
Why will millennials be the richest generation? ›
Ultimately, this wealth shift is a result of inheritance from prior generations, largely involving property but also other assets. It will bring “seismic” changes to how wealth is put to use, said Liam Bailey, global head of research at Knight Frank, in a statement.
Are millennials going to be the richest generation? ›
PITTSBURGH (KDKA) - Millennials could become the richest generation ever by the year 2044. That's according to The Wealth Report by global property consultant Knight Frank. The research says that generation is expected to inherit roughly $90 trillion worth of assets over the next 20 years.
Who are the most wealthy millennials? ›
Who are the Millennial Billionaires?
| Name | Age | Net Worth |
|---|
| Eduardo Saverin | 39 | $14.6 B |
| Cheng Yixiao | 37 | $14.1 B |
| Brian Chesky | 39 | $13.7 B |
| Nathan Blecharczyk | 37 | $12.4 B |
86 more rowsMay 27, 2021
“While millennials in advantageous work-family trajectories accumulated more wealth than their baby boomers counterparts, millennials with typical working-class life courses did no better, and sometimes worse, than those with equivalent lives in their parents' generation,” the researchers write.
How many millennials are financially stable? ›
According to data from the 2019 U.S. Financial Health Pulse consumer survey, only 24 percent of Millennials are Financially Healthy. 81 These individuals are spending, saving, borrowing, and planning in a way that will allow them to be resilient in the face of unexpected events and pursue opportunities over time.
Millennials and Gen Z are the unhappiest—but only in America
Finland's ranking didn't strike anyone as a surprise, as it's held onto its top spot for a while—in fact, the entire top 10 of the list has remained the same since before the COVID-19 pandemic. That top 10 includes all five Nordic countries.
What generation is in the most poverty? ›
More Millennial households are in poverty than households headed by any other generation. In 2016, an estimated 5.3 million of the nearly 17 million U.S. households living in poverty were headed by a Millennial, compared with 4.2 million headed by a Gen Xer and 5.0 million headed by a Baby Boomer.
Why may millennials wait for a big inheritance? ›
Broome warns that late inheritance may confine many younger people to the rental market for decades, damaging the economy. Typically, owning a house with a mortgage costs less than privately renting, which enables people to have more liquid savings, consume more and invest more in their pension.
Will millennials inherit trillions? ›
By the numbers: The Great Wealth Transfer
Estimated wealth to be inherited through 2045, by generation. Baby boomers (born 1946-1964) will inherit $4 trillion. Gen X (1965-1980) will inherit $30 trillion. Millennials (1981-1996) will inherit $27 trillion.
How much does the average millennial inherit? ›
As such, it is estimated that some millennials and Gen Zers stand to inherit roughly $320,000, which is actually lower than the cost of the average home in the U.S. of $431,000 (according to U.S. Census Bureau and U.S. Department of Housing and Urban Development data for the third quarter of 2023).
Who controls the most wealth in America? ›
The top 1% of American earners now control more wealth than the nation's entire middle class, federal data show. More than one-quarter of all household wealth, 26.5%, belongs to Americans who earn enough money to rank in the top percentile by income, according to Federal Reserve statistics through mid-2023.
How many generations until wealth is gone? ›
As the saying goes, 'from shirtsleeves to shirtsleeves in three generations. ' This means that wealth accumulated by one generation is often lost by the third generation.
What generation has all the money? ›
Baby boomers have the largest net worth
Baby boomers own 52.8% of all wealth in the U.S., compared to 5.7% of millennials, according to the Federal Reserve.
Is wealth passed down from generation to generation? ›
Building lasting wealth involves creating a plan for how it will be transferred and passed down to the next generation. This is known as generational wealth. Figures from Gobankingrates show that 70% of wealthy families lose their wealth by the next generation, with 90% losing it the generation after that.
What money is passed down from generation to generation? ›
Generational wealth refers to financial assets passed from one generation of a family to another. Those assets can include cash, stocks, bonds, and other investments, as well as real estate and family businesses.
