Millennials are the richest generation in history

Thanks to inherited family wealth, the generation born between 1981 and 2000 is considered the richest in history.

Millennials were once considered a generation that did not know how to accumulate assets, squandering money on personal entertainment in the context of financial recession. However, they are still identified as a group of people who will own a larger amount of assets than previous generations.

A recent study by the British real estate consultancy Knight Frank found that over the next 20 years, people born between 1981 and 2000 will have the opportunity to experience a "seismic" wealth through inheritance. While the distribution of wealth has been shifting between many regions of the world , the change within generations is even greater.

Knight Frank's 18th annual report says $90 trillion in wealth in the US is in the process of being transferred to the next generation, with Millennials being the biggest beneficiaries and becoming the wealthiest generation in history.

This figure seems to meet the desire of 75% of Millennials to become rich by 2024, when they receive inheritance from their grandparents and parents. While this rate is 53% for Baby Boomers (born 1944 to 1964), Gen X (born 1965 to 1980) is 56% and Gen Z (from 1997 to 2012) is 69%.

Millennials are often seen as frivolous spenders but own more wealth than previous generations due to inheritance. Photo: Blend Images/Alamy — Millennials are often seen as frivolous spenders but own more wealth than previous generations due to inheritance. Photo: *Blend Images/Alamy*

But while waiting for their assets to move, many Millennials were heavily affected by major events such as the 2008 economic crisis, which brought with it a series of financial difficulties, the Covid-19 pandemic, and conflicts in several countries.

Recent research by the UK's independent think tank Resolution Foundation also shows that Millennials are struggling to catch up with the living standards of older groups. In the context of rising rents, many people have to spend a large part of their income on housing and face major challenges related to buying their own home and building a retirement fund.

Experts predict that the future financial strength of the Millennial generation will be largely determined by inheritance.

Liam Bailey, head of global research at Knight Frank, said the shift in wealth could support sustainable investment options and behaviour.

Knight Frank also found that real estate, financial investments and cars were the most important sources of wealth. Among lower-value items, demand for handbags eased, the wine market grew slightly and watch sales at the three major auction houses increased slightly compared to previous years.

Minh Phuong (According to Guardian )

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