They can hardly afford to buy a home and have been hit by sky-high living costs, but millennials are nonetheless about to become the richest generation in world history.
According to a research paper to be released in full later this week by UK firm Knight Frank, a $US90 trillion ($138 trillion) wealth transfer is about to take place as the number of baby boomers dwindles and their assets are handed on to millennials in the next decade – and that’s just in the US.
That will see that cohort – loosely regarded as those born between the start of the 1980s and mid-1990s – have more collective wealth than any of their predecessors.
But not everyone will get to enjoy the spoils, as millennials from affluent families will receive far more significant assets when their older relatives die, whereas those from poorer backgrounds will receive less.
Knight Frank says the wealth transfer – which is already happening today – will lead to “seismic changes” in how money will be spent.
In particular, it said we are likely to see a far more climate-conscious wealthy class as millennials have “got the message” about the need for environmental responsibility far more than their older counterparts.
Jobs with the biggest wage jumps in 2023
“The generational differences in investing strategies will vary, but climate change is just one example through which capital will be redirected,” global research head Liam Bailey wrote.
“Looking solely at the top-line question on carbon emissions from our main attitudes survey of wealthy individuals and their advisors, millennials appear to have got the message when it comes to cutting consumption – 80 per cent of male and 79 per cent of female respondents say they are trying to shrink their carbon footprints.
“Male boomers take a different view, with just 59 per cent trying to reduce their impact, well below their female peers (67 per cent).”
Knight Frank’s wealth report will be released in full on Wednesday (UK time).
