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, those born between 1981 and 2000 will experience a “seismic” increase in wealth through inheritance. While the distribution of wealth has been shifting across many regions of the world, the change within generations is even greater.

Knight Frank's 18th annual report says $90 trillion of wealth in the US is being transferred to the next generation. Millennials are the biggest beneficiaries and are 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 the rate for the Baby Boomers (born between 1944 and 1964) is 53%, Gen X (born between 1965 and 1980) is 56% and Gen Z (from 1997 to 2012) is 69%.

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

But while waiting for their assets to move, many Millennials were hit hard 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 found that Millennials are struggling to catch up with the living standards of older groups. Rising rents are forcing many to spend a large portion of their income on housing and face major challenges in buying their own homes 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.

Also in Knight Frank’s study, 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 were up slightly from previous years.

Minh Phuong (According to Guardian )

Source: https://vnexpress.net/the-he-millennials-giau-co-nhat-lich-su-4717077.html