Will Gen Z be the richest generation by 2035?

A recent report by Bank of America indicates that Gen Z (born between approximately 1997 and 2012) will become the wealthiest generation in the next 10 years.

Bank of America (BoA) analyzes that in the next 10 years, Gen Z will become the largest workforce, accounting for approximately 30% of the global population, with a combined income reaching $36 trillion, increasing to $74 trillion by 2040. Meanwhile, Gen Z's income in 2023 was only $9 trillion, Newsweek reported on March 19th.

The report came as a surprise to some, given previous reports highlighting the challenges Gen Z faces in the current economy , including rising living costs and difficulty buying a home. This group is also considered the highest-spending generation, with global Gen Z spending estimated at $12.6 trillion in 2030, compared to $2.7 trillion in 2024.

Young people shop at a store in Italy.

Another survey by BoA in mid-2024 showed that 52% of Gen Z respondents felt their income was insufficient to meet their desired lifestyle, with high living costs being the biggest financial challenge.

Gen Z will also have higher levels of education than previous generations, along with higher incomes. A report by BoA, released on March 14th, indicated that Gen Z's wage growth in February increased by 8% year-on-year in 2024. However, this generation is facing an unfavorable labor market situation. The number of Gen Z households in the US receiving unemployment benefits increased by nearly 32% in February compared to the same period last year.

According to Fortune , Gen Z tends to spend lavishly on shopping and other forms of entertainment, rather than saving for less achievable goals. The BoA report also notes that this generation will have a significant impact on the economy, markets, and social systems, with changes in saving and spending behavior.

Source: https://thanhnien.vn/gen-z-se-la-the-he-giau-nhat-vao-nam-2035-185250320091940534.htm