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This windfall is set to shift the power dynamic in the economy away from boomers, predicts the report.
Millennials—broadly defined as those born between 1981 and 2000—are in line for a "seismic" windfall over the next 20 years, research suggests.
Looking ahead, the upside of this predicted shift in wealth is likely to aid efforts in sustainable investments and behavior, added Knight Frank's Liam Bailey.
But here's the catch: this sizeable wealth transfer is largely a lottery of birth, predominantly determined by generous inheritance from previous generations, including property, noted Liam Bailey, global head of research at Knight Frank, as reported by The Guardian.
Interestingly, the research also found that affluent young people are less likely to see property or real estate as a way to build wealth in the future.
"The low interest rate environment and impressive growth in house prices over the past 15 years is unlikely to be repeated in the next 15," Mike Pickett, director of Cazenove Capital, said in the report.
There's evidence, added Pickett, that the following generation, Gen Z, may be more comfortable renting a home, leasing a vehicle and living a subscription lifestyle than prior generations.
Yes, millennials will be the richest generation in history! This is the conclusion reached in the Wealth Report 2024, published by global real estate consultancy Knight Frank.
In fact, over the next two decades, millennials, also known as Generation Y, are poised to inherit some US$90 trillion in assets.
Knight Frank's Liam Bailey forecasts that wealth creation trends among those in Gen Z suggested that the 38% increase in female ultra-high net worth individuals—those with more than US$30 million in assets—over the past decade "is set to keep on building."
The annual Wealth Report examines the latest trends in property and economics across the globe.
This is especially relevant as the Wealth Report 2024 also revealed that the amount of super rich people has been growing, too.
"First-generation wealth creation is on the rise, as is the array of entrepreneurial routes to create it," he underlined.
The analysis found that 75% of millennials expect their wealth to increase in 2024, against 53% in the baby boomer generation (those born between 1946 and 1964), 56% in Generation X (1965 to 1980), and 69% in the younger Generation Z (1997-2012).
"I think the diversity of opportunity to create wealth has also grown—for example, there are YouTubers worth tens of millions."
But while millennials' best chance for wealth may be to simply inherit it, some are better poised to create it for themselves, said Mike Pickett in the report.
According to statistics, the number of ultra-high-net-worth individuals, increased 44% in the past five years.
"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," he said.
This is largely due to the property assets accumulated by the generations before them, explains the report.
"The improving interest rate outlook, the robust performance of the US economy and a sharp uptick in equity markets helped wealth creation globally," said Liam Bailey.
In light of this predicted wealth transfer, the report urges the financial sector to be ready for the influx in monied millennials by offering wealth management "on their wavelength."
And according to the Wealth Report, the number of wealthy people across the world is anticipated to grow about 28.1% by 2028.
Sources: (Knight Frank) (CNBC) (The Guardian) (CNN Business) (Euronews) (Business Insider)
By Knight Frank's estimation, this shift will make already well-off millennials the wealthiest generation in history.
The reality is many millennials are still struggling in the wake of a series of economic shocks: the 2008 financial crash is seen as a consequential benchmark.
The series of further economic downturns that followed, not least the financial flatlining that occurred during the global pandemic, only served to exacerbate the gloomy forecast.
In the United Kingdom, uncertainties surrounding the economic impact of Britain further eroded consumer confidence.
Meanwhile in the United States, the American Dream seems just that—a dream. Many millennials are struggling to get a foot on the property ladder.
Applying for and holding down steady employment is often an uphill battle, the job market remaining fiercely competitive.
And keeping up with the cost of living is a daily challenge for millennials on low income.
And the report signs off on an positive note, with millennials generally more optimistic about income growth.
Click through and spend some time crunching the numbers.
Why millennials could become the wealthiest generation
Who stands to gain from property and other equity-rich assets?
LIFESTYLE Society
Millennials are set to be worth trillions! According to a new report, those born between 1981 and 2000 will be the richest generation in history. But there's a catch! So, what is this windfall all about, and who exactly stands to benefit?
Click through and spend some time crunching the numbers.