Millennials will soon be the wealthiest generation, invest in climate

A massive transfer of wealth is set to take place over the next decade, with millennials set to come out on top. And their differing attitudes from preceding generations will change where the world’s wealth will be invested, forcing asset managers to adapt.

In the U.S., the Silent generation and baby boomers will transfer about $90 trillion of assets over to millennials over the next 10 years or so, according to a new report by the London-based global real estate consulting firm Knight Frank. The silent generation is typically defined as people born between 1928 and 1945, while baby boomers were born from 1946 to 1961. Millennials, who follow Gen X, were born between 1981 and 1996.

This transfer of wealth will result in millennial’s becoming the richest generation in history, the report adds. And firms selling products or services to these group will need to adjust theirstrategies to meet them.

Climate change will impact how millennials use their wealth

In one key case, Knight Frank highlighted the different attitudes millennials have about climate change compared to older generations. According to a firm’s survey of wealthy individuals and their advisors, millennials are more likely to reduce their consumption because of climate change.

About 80% of male millennial respondents and 79% of female millennial respondents said they are trying to minimize their carbon footprint. Conversely, only 59% of male baby boomers and 67% of female baby boomers said the same.

This latest report tracks with a Bank of America survey from 2023, which finds that three-quarters of American millennials want to invest in sustainable products and ventures.