Millennials set to become `richest generation in history' in next 20 years: report

A “seismic” transfer of wealth and assets over the next 20 years will make millennials the richest generation in history, according to a new report from global property consultant Knight Frank.

Millennials are poised to inherit about $90 trillion of assets according to the 76-page report, but there's a catch. The millennials who stand to benefit the most already come from affluent families, potentially widening the gap in inequality.

“There is a huge dichotomy at play: 71 per cent of the world lives in a country where inequality is growing, while record numbers of next-gen family members recognize they have a responsibility to counter inequality with impact investing or fighting climate change,” Ben Whattam, the CEO and co-founder of Rising Gen, a business consultancy, said in the report.

Released this week, the annual report examines the latest trends in property and economics across the globe.

It found that individuals born between 1928 and 1945, known as the silent generation, alongside baby boomers, who were born from 1946 to 1964, are poised to pass their wealth, primarily in the form of property and equity, to the generation born between 1981 and 1996 upon their passing. Those assets are expected to approach $90 trillion in the U.S. alone.

At a time when the cost of living is soaring, Liam Bailey, global head of research at Knight Frank, said the wealth transfer will change how the assets are put to use, including younger generations being less inclined to view property or real estate as a viable means for future wealth accumulation.

“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,” said Cazenove Capital director Mike Pickett in the report.

He added that he believes Gen Z, born between 1997 and 2012, “may be happier to rent property or lease assets such as cars, and to adopt subscription-led lifestyles.”

The report also found a global rise in the number of ultra-high-net-worth individuals — defined as those with a net worth of $30 million or more. There are now close to 630,000 people that meet that marker globally, the report said, noting a 4.3 per cent rise in 2023.