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The Wealth Report 2024 -

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.

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Latest global trends -

The annual Wealth Report examines the latest trends in property and economics across the globe.

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A "seismic" windfall -

Millennials—broadly defined as those born between 1981 and 2000—are in line for a "seismic" windfall over the next 20 years, research suggests.

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Assets inheritance -

In fact, over the next two decades, millennials, also known as Generation Y, are poised to inherit some US$90 trillion in assets.

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The generation factor -

This is largely due to the property assets accumulated by the generations before them, explains the report.

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Well-off set to be wealthier -

By Knight Frank's estimation, this shift will make already well-off millennials the wealthiest generation in history.

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The generation gap -

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). 

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A shift in economic power -

This windfall is set to shift the power dynamic in the economy away from boomers, predicts the report.

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Lottery of birth -

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.

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Everyday struggle -

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.

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Economic woes -

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.

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Financial uncertainties -

In the United Kingdom, uncertainties surrounding the economic impact of Britain further eroded consumer confidence.

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Wake-up call -

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.

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Competitive job market -

Applying for and holding down steady employment is often an uphill battle, the job market remaining fiercely competitive.

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Cost of living crisis -

And keeping up with the cost of living is a daily challenge for millennials on low income.

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Sustainable future -

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.

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Climate change awareness -

"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.

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Building future wealth -

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.

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Low interest rates -

"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.

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Subscription lifestyle -

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.

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More wealthy women -

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."

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Being your own boss -

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.

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More opportunities to create wealth -

"I think the diversity of opportunity to create wealth has also grown—for example, there are YouTubers worth tens of millions."

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Taking the entrepreneurial route -

"First-generation wealth creation is on the rise, as is the array of entrepreneurial routes to create it," he underlined.

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Monied millennials -

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."

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Generating wealth -

This is especially relevant as the Wealth Report 2024 also revealed that the amount of super rich people has been growing, too.

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Ultra-high-net-worth individuals -

According to statistics, the number of ultra-high-net-worth individuals, increased 44% in the past five years.

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Optimistic outlook -

And the report signs off on an positive note, with millennials generally more optimistic about income growth.

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US economy growing -

"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.

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A richer world -

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) 

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