Millennials could become the wealthiest generation ever, finds report

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Written on Mar 1, 2024

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If you're born after 1981, you're likely a Millennial.
And if you are, are you feeling wealthy today?
A new report out this week says you're among what will become the richest generation ever.

Respected thought leader and real estate agency Knight Frank releases a wealth report once a year, which looks at the secular trends affecting the ultra-rich.

This year, the 2024 Wealth Report (officially out on March 6th) will focus on the transfer of assets from the Baby Boomer Generation (those born before 1965) to their heirs.

It especially focused on Millennials saying that, with $50 trillion in assets in the United States alone coming to them, affluent Millennials are about to become the wealthiest generation the world has ever seen.

While Goldman Sachs estimates it more conservatively at $30 trillion, the message is clear: a huge amount of inheritance is headed for those born after 1985.

Who are Millennials?

‘Millennials’ is the popular term for the generation describing those born after 1980 to either Generation X or Baby Boomer parents, but before 1996.

This means that most people currently in their thirties or early forties are considered Millennials.

But there’s a catch

The key here is in the word ‘affluent’ – not just all thirty and forty-somethings are set to strike it rich.

Unsurprisingly, considering the nature of Knight Frank themselves, these assets will be in real estate, largely.

Which means that those Baby Boomers who have amassed an impressive real estate portfolio are the ones which will most materially affect their surviving families’ wealth when they pass on.

This seeming minority doesn’t seem to have dented the majority’s optimism, though. According to the Guardian, who quoted the same Knight Frank research, 75% of Millennials and 69% of Gen Z expect the money they have to maximise in 2024, compared to just 53% of Baby Boomers and 56% of Gen X.

There’s also another catch

Another thing to consider is that when this passing of the property torch will take place is far from certain.

Baby Boomers and other generations alike are living longer than previous ones, particularly those considered affluent, meaning that it’s not impossible that Millennials may themselves be rather advanced in age by the time this wealth changes hands.

So, if you’re a Millennial, perhaps don’t count your millions before they hatch.