Knight Frank’s research shows that generational wealth transfers will have a major impact on millennials, positioning them to become the richest generation ever.
In spite of long-term economic losses like the 2008 financial crisis and other global shocks, we anticipate that millennials will accumulate substantial wealth in the next decades, primarily through inheritances and property holdings imparted by previous generations.
A staggering windfall of around $90 trillion in assets in the United States alone would propel the millennial generation to unprecedented heights of wealth.
Despite this boon, millennials still face rising housing costs and the challenge of building wealth. Even though 75% of millennials anticipate financial gain in 2024, many of them are still battling with spending constraints and misconceptions.
Even though millennials are known to be frivolous with their money, the wealth that previous generations have earned—particularly through inheritance and property ownership—is crucial to their financial stability in the future.
The current practice of passing wealth down through generations will have a significant impact on millennials’ ability to save, invest, and make money for themselves.
Millennials place a high value on financial investments and real estate holdings as they anticipate their inheritances.
Improving their financial condition and securing their future prosperity are possible for millennials through the possibility of large-scale wealth transfer across generations, even while the economy is struggling.
So, while generalisations about millennials’ spending habits may stick around, the reality is that this generation’s wealth is heavily reliant on the wealth of the previous generation.
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