Millennials are about to experience a huge change in their finances. They are set to inherit a whopping $90 trillion over the next 20 years. This significant transfer of money, mentioned in Knight Frank’s 2024 Wealth Report, will likely change how the economy works. It will also shift who holds the most power, especially compared to the older boomer generation.
Diversity of Opportunities
Based on discoveries, a report predicts a significant shift in the distribution of wealth. This report says millennials are going to receive a lot of assets that will make them much more prosperous. This isn’t about just moving money around; it means there are more ways for people to become wealthy.
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Mike Pickett, who works at Cazenove Capital, says there are now more opportunities to make money. Money can be made through online businesses, entrepreneurial ventures, and company startups. Compared to earlier generations, these opportunities show a change in how people are becoming wealthy for the first time.
The Road to Financial Success
Despite this hopeful view, millennials have faced numerous obstacles on their path to financial success. These challenges include the soaring cost of housing, a highly competitive job market altered by the pandemic. They also face the weight of student loan debt.
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Moreover, there’s a disconnect in expectations about inheritance. Many millennials anticipate receiving more inheritance from their boomer parents than they actually plan to leave.
Investing in the Property Market
Millennials are still finding it tough to buy homes. Most of them are trying to get a foothold in the property market, but it isn’t proving easy. Even the super-rich millennials are facing this issue.
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This shows how important it is to invest in real estate. A report indicates that affluent millennials, both male and female, are eager to buy more properties next year. This sentiment is similar to that of the wealthy Gen Z folks.
Increase in the Number of Wealthy People
The Knight Frank report also talks about how there are more super-rich people around the world. These wealthy people are increasing in number, especially in places like India and China.
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This shows that wealth is growing. It also shows that the financial industry is becoming more important in meeting the needs of younger, wealthy people.
Financial Adaptations
According to the report, young adults from the millennial generation are about to receive a lot of money. The report also says banks and other financial companies need to change their services. The financial sector was advised to adapt to the needs and preferences of the millennials.
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This change is significant for handling all the money people saved up during the pandemic and for helping millennials who have different ways of making money and becoming financially independent.