A new report predicts that millennials in the United States could inherit as much as $90 trillion from older generations by 2044, which would make them the wealthiest generation in history.
The analysis from UK-based real estate consultancy Knight Frank, known as The Wealth Report, found that the massive transfer of assets from baby boomers and the silent generation into millennial hands will occur over the next two decades through inheritances.
However, the report notes this wealth windfall will disproportionately benefit affluent millennials who are already part of families with significant assets. For many younger Americans struggling with student debt, stagnant wages and high housing costs, the generational wealth gap may only continue to grow.
Still, the collective net worth millennial stand to gain through inheritances would far surpass any other generation. According to the Federal Reserve, American households and non-profits currently hold roughly $150 trillion in total wealth.
The Knight Frank report also found that concepts of wealth accumulation are shifting. Younger people surveyed were more open to renting rather than owning homes and vehicles long-term. Some experts say this attitude stems from financial obstacles plaguing many millennials during young adulthood due to the 2008 recession.
Separate research from the Federal Reserve and Gallup echo these points about changing generational preferences. However, others argue building equity remains key to long-term security. As the millennial cohort and Generation Z come of age, their impact on markets will likely transform traditional wealth management.
While uncertainties remain, the prospect of such a massive inter-generational transfer of assets signals seismic changes for the US and global economy in the coming decades. How this newfound wealth changes spending, investing and societal priorities across age groups continues to be closely watched. As inheritance sums start flowing, the impacts on sectors like housing and financial planning could reverberate significantly.
