Thanks to inheriting wealth from their families, the generation born between 1981 and 2000 is considered the richest in history.
Millennials were once considered a generation incapable of accumulating wealth, squandering money on personal pleasures amidst financial recession. However, they are still identified as a group that will possess greater wealth than previous generations.
A recent study by the British real estate consulting firm Knight Frank suggests that, over the next 20 years, those born between 1981 and 2000 will experience a "wealth earthquake" through inheritance. While the distribution of wealth has been shifting across many regions of the world , the generational shift is even greater.
Knight Frank's 18th annual report suggests that $90 trillion in assets in the U.S. are in the process of being transferred to future generations. Millennials are the generation receiving the most and have become the wealthiest in history.
This figure seems to fulfill the aspirations of 75% of Millennials to become wealthy by 2024, inheriting assets from their grandparents and parents. In comparison, this figure is 53% for Baby Boomers (born between 1944 and 1964), 56% for Gen X (born between 1965 and 1980), and 69% for Gen Z (born between 1997 and 2012).
Millennials are often seen as frivolous spenders but possess more wealth than previous generations due to inheritance. Photo: Blend Images/Alamy
But while awaiting the relocation of assets, many Millennials have been heavily impacted by major events such as the 2008 economic crisis and the resulting financial difficulties, the Covid-19 pandemic, and conflicts in several countries.
Recent research by the independent UK think tank Resolution Foundation also indicates that Millennials are struggling to keep up with the living standards of older age groups. Rising rents mean many are spending a significant portion of their income on housing and facing major challenges related to buying a home and building a retirement fund.
Experts predict that the future financial strength of Millennials will be largely determined by inherited wealth.
Liam Bailey, head of global research at Knight Frank, said that shifts in asset classes could support sustainable investment strategies and behaviors.
According to Knight Frank's study, real estate, financial investments, and automobiles were the most important asset classes. Among lower-value items, demand for handbags decreased, the wine market saw a slight increase, and watch sales at the three major auction houses rose slightly compared to previous years.
Minh Phuong (According to Guardian )
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