Live carefree: At least when it comes to their finances, many heirs of the Millennial generation are likely to have taken care of things. Thomas M Barwick/Getty Images
Millennials are expected to inherit $83 trillion over the next two decades, according to a new wealth report.
This inheritance will make them the richest generation of all time.
But Generation Z has a particularly strong opportunity to create their own wealth, the report says.
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.
The richest generation in history to date – that will soon be the Millennials. In all likelihood, they will inherit more money than any other age group before them.
Over the next 20 years, assets worth $90 trillion, or the equivalent of €83 trillion, are expected to shift between generations. Above all, members of the baby boomer generation are inheriting millennials, according to one new asset report the global real estate consultancy Knight Frank. This wealth transfer will “make wealthy Millennials the richest generation in history,” the report says.
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Millennials are having a much harder time owning a home than previous generations, due to rising debt, high interest rates and a decline in housing supply. While Millennials’ best chance is to inherit wealth, some are better able to do it themselves, Mike Pickett, director at British wealth manager Cazenove Capital, explains in the report.
“It goes beyond simply shifting existing assets,” Pickett said. “I think the variety of ways to create wealth has also increased – for example, there are YouTubers who have tens of millions. First-generation wealth creation is increasing, as is the diversity of entrepreneurial pathways to create it.”
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The report calls on the financial sector to adapt to the influx of wealthy millennials by offering wealth management “on their wavelength”. This could be particularly useful as more millennials look to preserve the surprising amount of wealth they built during the pandemic years.
The report also shows that there are also more and more super-rich people. The number of so-called ultra-high net worth individuals, which Knight Frank defines as people with assets of more than $30 million – 27.6 million euros – has increased by 44 percent in the last five years. And over the next five years, Knight Frank expects their numbers to increase by 28 percent, primarily in India and China.
Read the original article Business Insider.