Millennials Set to Be the Wealthiest Generation Ever

By: Georgia | Published: Feb 29, 2024

Millennials are on the verge of receiving an unprecedented transfer of wealth, amounting to $90 trillion in the United States alone, as reported by Knight Frank in their 18th annual wealth report.

This generational wealth transfer, primarily in property, positions millennials to potentially become the wealthiest generation in American history, marking a significant shift in the nation’s financial landscape.

Millennials' Financial Prospects Brighten

The Guardian reports that contrary to their portrayal as irresponsible spenders, millennials stand to inherit considerable assets accumulated by previous generations.

A two-story suburban house with gray shingles and white trim. The house features a wrap-around porch with white railings

Source: Todd Kent/Unsplash

The research by Knight Frank demonstrates a forthcoming “seismic” windfall for those born between 1981 and 2000, driven by the accumulation of property wealth by older relatives, which fundamentally alters expectations of their financial futures.

The Scale of Wealth Transfer

The scale of this impending wealth transfer is monumental, with the Knight Frank report highlighting that $90 trillion of assets will change hands in the coming decades in the U.S. alone.

Three young adults are seated on outdoor steps in a casual urban setting. One woman is holding a smartphone, laughing as she shares something on the screen with a female friend, who is holding a laptop

Source: Buro Millennial/Pexels

This transition is poised to elevate millennials to an unprecedented level of wealth, significantly surpassing that of prior generations.

Millennials vs. Other Generations

Knight Frank’s findings reveal that 75% of millennials anticipate an increase in their wealth in 2024, compared to lower expectations among baby boomers and Generation X.

A man and a woman sit at a wrought iron table overlooking a vast body of water. The man is wearing a gray shirt and a straw hat, and the woman is in a black tank top and white pants. They are both facing the sea

Source: marco barsotti /Unsplash

This optimism among millennials is notable, especially in the context of the economic challenges they have faced.

Generational Wealth Shifts

This wealth transfer is not merely about financial inheritance; it represents a major shift in generational assets.

People are relaxing and socializing on a grassy slope in a city park at sunset. The warm golden light of the setting sun bathes the scene. In the foreground, individuals are seated on the grass, some looking towards the city skyline in the distance

Source: Leah Newhouse/Pexels

Beyond the U.S., this redistribution signals changing economic dynamics globally, with millennials at the forefront of this transformation, inheriting not just wealth but also the responsibility that accompanies it.

Millennials' Commitment to Sustainability

According to Knight Frank, this new wealth could support sustainable investment and behaviors among millennials.

A landscape of multiple wind turbines with white towers and blades with red stripes, standing tall in a yellow field under a clear blue sky

Source: Zbynek Burival/Unsplash

The report cites that a significant majority of millennials are keen on reducing their carbon footprints, indicating a trend towards more environmentally conscious financial decisions.

The Impact of Economic Turbulence

Many millennials are still recovering from the economic impacts of the 2008 crash, subsequent financial downturns and recent global upheavals.

A diverse crowd of protesters, with a person in the foreground holding a cardboard sign that reads, 'BANKS GOT BAILED OUT WE GOT SOLD OUT.' The sign is written in colorful letters

Source: finceptional/X

The anticipated wealth transfer could provide critical relief and opportunities for investment in housing, retirement, and debt repayment, addressing some of the economic challenges this generation has faced.

Millennials and the Housing Market

High housing costs and rising rents have been significant hurdles for millennials, impacting their ability to purchase homes and invest in their futures.

A smiling woman and a man, both smartly dressed, are being handed a set of keys by someone out of frame. The woman, in a rose-colored blouse with ruffle detailing, and the man, in glasses and a patterned shirt, are looking at the keys with expressions of happiness

Source: Drazen Zigic/freepik

However, the anticipated wealth transfer could offer relief and opportunities to invest in real estate.

Economic Disparities Across the Pond

Prior to this report by Knight Frank, the financial trajectory for UK millennials in particular, has been shown to be significantly less optimistic.

A group of office workers engaged in various activities within a busy office environment. In the foreground, a woman with glasses smiles while interacting with a colleague facing away from the camera. In the background, two women stand and discuss something on a laptop, while a male colleague in the foreground right looks on

Source: Mimi Thian/Unsplash

The Resolution Foundation points out a trend: UK millennials born in the late 1980s are earning significantly less at age 30 compared to Generation X when they were at the same life stage.

US Millennials' Economic Comeback

In the US, the scenario for millennials is markedly more hopeful. Despite the financial crisis impacting their initial earning potential, significant income gains in recent years have enabled American millennials to catch up, according to The Guardian.

A group of women, gathered around a dinner table lit by candlelight, are toasting with wine glasses. They are laughing and enjoying each other's company in a cozy, dimly lit room

Source: Andrea Piacquadio/Pexels

This recovery contrasts with the situation in other advanced economies, showcasing a resilience and rebound in the economic prospects for the younger American workforce.

Comparative Recovery: US vs. UK Millennials

Economist Sophie Hale highlights a divergent recovery path between US and UK millennials.

A lively scene along a riverside walkway with people walking, sitting, and taking photos against a backdrop of London's cityscape

Source: Mike Stezycki/Unsplash

“Young people across advanced economies were hit by the financial crisis, putting a stop to decades of progress. Fifteen years on, this ‘crisis cohort’ are no longer young. And while many US millennials have bounced back, their counterparts in Britain are still wearing economic scars as they approach middle age.”

Future Financial Landscape

As millennials transition into their role as the primary wealth holders in the U.S., their influence on the economy and society will be significant.

A candid moment among a group of friends sitting outdoors. A man with long hair and a beard is laughing with a woman in a yellow top, while another woman in a red sleeveless top smiles broadly. A man in a gray t-shirt gestures while speaking

Source: katemangostar/freepik

Their inherited wealth, coupled with their values and priorities, is expected to drive changes in various sectors, from real estate to financial investments, setting new precedents for generations to follow.