The U.S. is on the brink of a major wealth transfer that is set to create the wealthiest generation in history, according to a new report by global real estate consultancy Knight Frank. The report reveals that over the next two decades, baby boomers are expected to pass down a staggering $90 trillion in assets to millennials, surpassing previous estimates of between $53 trillion to $84 trillion.
This unprecedented shift in wealth is outlined in Knight Frank’s “2024 Wealth Report,” which predicts that by 2030, millennials’ wealth could increase fivefold from its current state. This projection is supported by findings from Coldwell Banker, which suggest a positive financial future for a generation that has faced challenges like the aftermath of the 2008 financial crisis and the impact of significant money printing and the diminishing purchasing power of the dollar.
Despite these obstacles, millennials are proving to be financially responsible, debunking the stereotype of being financially irresponsible. A study by Alliant Credit Union in 2023 portrayed millennials as the most fiscally motivated and responsible generation, a trait that has been developed out of necessity.
Interestingly, while 53% of millennials expect to inherit $350,000 or more from their parents, the older generation anticipates giving $250,000 or less. The report also highlights the financial benchmark for entering the top 1% of earners in America, which is now set at $5.8 million, an increase of $700,000 from the previous year. This rise reflects the changing landscape of wealth in the country and emphasizes the growing gap between the wealthiest individuals and the rest of the population.
As the massive transfer of wealth takes place, it signals the emergence of a new affluent class and suggests a potential shift in the dynamics of financial power and responsibility across generations. This transformation could have far-reaching implications for the future of wealth distribution and economic stability in the U.S.
This article was created with the help of AI tools and was reviewed and published by Benzinga editors. Photo credit: Shutterstock.
