$90 trillion worth of assets is expected to trickle down in the next 20 years from boomers, with millennials set to be the winners of this wealth transfer

$90 trillion worth of assets is expected to trickle down in the next 20 years from boomers, with millennials set to be the winners of this wealth transfer, per Knight Frank.


Many millennials are currently frustrated with the elusive nature of long-held American Dreams like homeownership, a steady job, and an affordable cost of living. However, over the next twenty years, Millennials are set to inherit around $90 trillion of assets, potentially making them the wealthiest generation in history. Yet, this wealth transfer is likely to benefit primarily those who come from affluent families, potentially exacerbating wealth inequality.

The Wealth Report, a periodic publication from global property consultant Knight Frank, predicts that between now and 2044, the Silent Generation and Baby Boomers will pass on their significant wealth to Millennials. However, whether a Millennial benefits from this transfer largely depends on the luck of birth.

This shift in wealth is primarily driven by inheritance from previous generations, primarily involving property but also other assets. Liam Bailey, global head of research at Knight Frank, described this impending change as "seismic" in terms of how wealth is utilized.

The report also indicates that affluent young individuals are less likely to view property or real estate as a primary means of wealth-building in the future. Mike Pickett, director of Cazenove Capital, noted that the low-interest-rate environment and significant growth in house prices seen over the past 15 years are unlikely to be repeated in the next 15. There is evidence suggesting that the next generation, Gen Z, may be more inclined to rent homes, lease vehicles, and embrace a subscription-based lifestyle compared to prior generations.

Pickett also highlighted that not only will wealth be transferred to younger individuals, but there are also various new avenues for wealth creation. He mentioned the rise of first-generation wealth creation, such as YouTubers worth tens of millions, and the increasing array of entrepreneurial opportunities available.

Additionally, the report revealed that more people became wealthier last year, with a growth in the number of super-wealthy individuals that more than offset a decline seen the year before. The number of ultra-high-net-worth individuals, defined as those with a net worth of $30 million or more, increased by 4.3% in 2023 from the previous year, reaching 626,619 people globally.

North America saw the most significant growth in the population of ultra-wealthy individuals, with a 7.2% increase from the previous year. This was followed by the Middle East, with a 6.2% increase, and Africa, which saw a 3.8% increase. Latin America was the only region to experience a decline, with a 3.6% drop from the previous year.

Looking ahead, the report predicts a 28% increase in the number of ultra-high-net-worth individuals over the next five years. While this indicates growth, it is a slower pace than the 44% increase seen in the five-year period ending in 2023. Asia, including countries like India, China, Malaysia, and Indonesia, is expected to see significant growth in the number of super-wealthy individuals.