By Steve Dinnen
Despite their current financial challenges, a lot of millennials do have some financial lifelines. They’re called mom, dad, grandma and grandpa.
Between now and 2044, the Silent Generation (born 1925-1945) and baby boomers (1946-1964) are expected to pass along significant wealth, a staggering $90 trillion, to their millennial offspring. This will make millennials (1981-1986) the richest generation in history, according to the periodic “The Wealth Report” from global property consultant Knight Frank.
Ultimately, this shift in wealth is a result of inheritance from prior generations — mostly property but also other kinds of assets. The coming shift will bring “seismic” changes to how wealth is put to use, said Liam Bailey, who leads global research for Knight Frank.
The research also shows that affluent young people are less likely to see property or real estate as a way to build wealth in the future.
“The low interest rate environment and impressive growth in house prices over the past 15 years is unlikely to be repeated in the next 15,” Mike Pickett, director of Cazenove Capital, said in the report.
There’s evidence, Pickett added, that the following generation, Gen Z (1997-2012), may be more comfortable renting a home, leasing a vehicle and living a subscription lifestyle than prior generations. Not only will wealth be transferred to these younger people, but they’ll have a variety of new ways to build wealth.
