According to a recent survey, 75 percent of Gen Z expect an increase in wealth. 43 percent of them expect “significant growth”. Klaus Vedfelt/Getty Images
Among high earners, Gen Z is the most confident about their ability to get richer.
Gen Z women are particularly confident in their ability to create wealth.
The rest of Gen Z may not share this confidence.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
It seems that the wealthy are confident that they will be able to maintain wealth, and the wealthy side of Generation Z is no exception. In a new report released by global real estate consultancy Knight Frank, 65 percent of high-net-worth individuals worldwide expect their wealth to increase in 2024.
High net worth individuals are those with a net worth of over $1 million (€0.92 million) or an annual income of $200,000 (€184,000) or more. Knight Frank’s Next Gen Survey was conducted among 600 high net worth individuals.
Generation Z appears to be the most confident that this will be the case, with 75 percent of the youngest generation in the workforce expecting their wealth to increase. Of this group, 43 percent expect “significant growth”.
“A clear pattern emerges when the data is analyzed by age: younger affluent groups are more confident about the economic outlook than older groups,” the report says. A gender breakdown shows that 81 percent of wealthy Gen Z women versus 69 percent of wealthy Gen Z men expect their money to grow – a departure from the general trend where men were more likely to say their money would grow.
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According to the report, this could indicate that the 38 percent increase in female ultra-high net worth earners, i.e. those with a net worth of more than $30 million (€27.6 million), “will continue to increase” over the last ten years.
Millennials could become the richest generation of all time
Overall, rich young people will earn a lot of money in the coming years. According to the report, $90 trillion (€83 trillion) worth of wealth is expected to trickle down over the next 20 years, with millennials being the winners of this wealth transfer. “Rich Millennials could become the richest generation in history,” the report says.
For the rest of Generation Z and Millennials, the future doesn’t look quite as optimistic – but things could still look up for this less privileged group too.
Millennials and Gen Z face inflation, healthcare costs, and ever-increasing housing and car costs. Furthermore, debt is a big problem for the younger generation. When it comes to the ability to make large purchases like buying a home, confidence is low among these younger generations.
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However, previous surveys show that the net worth of these younger generations is also increasing – thanks in part to the early pandemic period.
According to an analysis of the blog „Liberty Street Economics“ According to the Federal Reserve Bank of New York, Americans under 40 experienced an 80 percent increase in wealth. The increase was influenced by a number of factors, Business Insider US previously reported, including stimulus checks, lock-in savings and a pause in student loan repayments.
Read the original article in English here.