Surprise generation to become richest ever

A generation that has been mocked for crying into their soy lattes is set to get a $139 trillion financial boost – but there’s a catch.

A generation that has been mocked for crying into their soy lattes and smashed avocado on toast is set to get a $139 trillion financial boost – but there’s a catch.

A generation that has been mocked for crying into their soy lattes and smashed avocado on toast is set to get a $139 trillion financial boost – but there’s a catch.

Global real estate consultancy Knight Frank is predicting a massive transfer of wealth will occur over the next 20 years, with generational money being handed down from Baby Boomer parents to their Millennial kids.

The wealth involved — assets worth US$90 trillion (A$139 trillion) in the US alone — is set to make Millennials born between 1981 and 1996 “the richest generation in history” according to the Frank Knight report.

But the catch is that their newfound riches will only come with the death of their parents.

Baby Boomers are finally going to hand their wealth over – when they die.

In Australia, research from McCrindle shows that in total the Baby Boomers, born between 1946 and 1964, represent a quarter of Australia’s population but own 53 per cent of our national wealth.

Data from the Productivity Commission predicts that Australian Boomers will pass on an estimated $224 billion each year in inheritances by 2050 or $3.5 trillion in total.

But it may be a case of too much, too late for many Millennials.

Despite earning higher incomes at the same age than previous generations, Millennials have been burdened with larger student debts and face astronomical property prices.

As a consequence, they’ve had to make significant lifestyle decisions based on their lack of wealth, such as delaying getting married and having kids and resigning themselves to a lifetime of renting.

Millennials have had to make lifestyle choices based on their lack of wealth.

Frank Knight has also warned those looking to cash in on the newfound wealth of Millennials that they will have different investment priorities to their parents.

Liam Bailey, global head of research at Knight Frank said: “The difference in outlook between younger and older generations will result in a substantial reappraisal of marketing strategies for anyone wanting to sell products or services to this newly wealthy group.”

He said that climate change, for example, is one area where there are clear generational differences in investment priorities.

“Millennials appear to have got the message when it comes to cutting consumption – 80 per cent of male and 79 per cent of female respondents say they are trying to shrink their carbon footprints,” Mr Bailey said.

By contrast, just 59 per cent of male Boomers were found to be trying to reduce their impact, significantly below Boomer women, 67 per cent of whom are trying to cut their carbon footprint.