A huge wealth transfer means millennials are poised to become 'the richest generation in history' (2024)

FAQs

Will a $90 trillion Great Wealth Transfer make millennials the richest generation in history? ›

The report estimated that over the next couple of decades, about $90 trillion worth of assets will move from older generations, mainly baby boomers, to millennials.

'Sandwich generation'

Knight Frank's 2024 Wealth Report found that, over the next 20 years, $90 trillion in assets will be transferred between generations in the US alone. This means that millennials are expected to be five times richer in 2030 as the assets begin to change hands.

In the fourth quarter of 2023, 51.8 percent of the total wealth in the United States was owned by members of the baby boomer generation.

While the average millennial has less wealth at the age of 35 than previous generations, the top 10% of millennials have 20% more wealth than the top baby boomers at the same age.

"Wealth transfer” is the process of transferring wealth from one generation to another, and there are several strategies that you can pick from to do so. Each comes with its own unique set of advantages and disadvantages, so it's essential to investigate all of them before deciding where to place your own assets.

Millennials were somewhat better off than Gen X—those born between 1965 and 1980—when they were the same age. Zoomers, however, are much better off than millennials were at the same age. The typical 25-year-old Gen Z-er has an annual household income of over $40,000, more than 50% above baby-boomers at the same age.

It looks like there's more good news on the way for me and all my latte-sipping, Netflix-binging friends, as the 2024 wealth report by real estate agent Knight Frank has concluded that millennials are on track to become the richest generation in history!

Millennials are set to inherit as much as $90 trillion in assets before 2044, a new report shows. Many millennials are currently grasping in frustration at long-held American Dreams like homeownership, a steady job and an affordable cost of living.

Sixty% of wealth transfers are lost by the second generation, and 90% by the third. Only 10% of wealth passes beyond the third generation. The overall financial environment, income tax regulations, and estate tax laws fluctuate dramatically over a three-generation time-span.

When Millennials Make the 1% Mark — For Their Age Group. Consider that millennials are toward the younger end of earners, which plays a role in where they fall on the net worth continuum. “They hit the top 25% at around $50,000 and the top 1% at about $175,000,” Jennings said.

Who was the luckiest generation? ›

Baby boomers are often said to be the luckiest generation financially — but millennials will be better off than their parents in retirement, survey finds.

Within the three distinct categories, Baby Boomers are again the heavy weights with the most Economic and Political Power. However, Gen X emerges as the most powerful generation in the cultural sphere.

“As a millennial, if you are investing in your accounts — 401(k), Roth IRA, HSA, investment account — setting up automatic contributions on a monthly or per-paycheck basis, and over time if you are increasing the amount you are adding to those accounts, this allows your wealth to grow for you,” said Darren L.

According to a study from the Journal of Behavioral and Experimental Economics, Millennials are significantly more likely than older generations to have negative attitudes toward money, seeing it as a potential source of corruption rather than a means to achieve goals (Journal of Behavioral and Experimental Economics, ...

Meanwhile, American Millennials are expected to become the richest generation ever as a $90 trillion asset transfer between Boomer parents and Millennial children begins to take place over the next two decades. A huge percentage of that wealth comes in the form of property assets accumulated by generations before them.

For any amount of wealth to be considered generational wealth, it simply has to be passed down by at least one generation; however, there is no definitive number that constitutes generational wealth because wealth is relative. The amount of passed-down family wealth all depends on the recipients and how it is used.

Building lasting wealth involves creating a plan for how it will be transferred and passed down to the next generation. This is known as generational wealth. Figures from Gobankingrates show that 70% of wealthy families lose their wealth by the next generation, with 90% losing it the generation after that.

There are many examples in the Bible where God transferred wealth into the hands of His people to “establish His Covenant” on the earth. God is a covenant-keeping God (Psalm 89:34). Has God called you to do something that seems impossible? Trust Him today to provide all that you need to accomplish it!

To be considered very high net worth, one might need assets ranging from $5 million to $10 million, while an ultra-high net worth status could require $30 million or more.