The Great Wealth Transfer: How Millennials Will Benefit
While Boomers (born 1946 to 1964) and Generation X (born 1965 to 1980) hold most of the wealth in the United States at the moment, there is going to be a major shift in wealth very soon. The Great Wealth Transfer will happen when boomers and Gen Xers pass down their money, real estate and other property to millennials born between 1981 and 1996.
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The 2024 Wealth Report from real estate firm Knight Frank suggests that $90 trillion of assets will transfer from Boomers and Gen X to Millennials in the United States. This shift in wealth is expected to occur over the next 20 years, making Millennials the richest generation.
However, a significant portion of wealth — on the order of $68 trillion — will move to millennials by 2030, according to Coldwell Banker. In fact, Coldwell Banker estimates that “by 2030, millennials will hold 5 times as much wealth as they have today.”
While you may stand to inherit some money in the Great Wealth Transfer, it’s important to not rely on an inheritance in your financial plans. There is always a possibility that your parents and grandparents may choose to or need to spend their wealth on retirement or healthcare.
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Planning ahead is key if you do believe you will benefit from the Great Wealth Transfer. It can be helpful to find a financial advisor who aligns with your needs, and start thinking about an investment strategy. Since investment priorities vary widely between older generations and Millennials, including ethical investing and carbon reduction, financial advisors will be trying to adapt to the shift in priorities for their new, richer clients.
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