According to Knight Frank, a $90 trillion wealth transfer over the next two decades will likely make millennials, born between 1981 and 1996, the richest generation in history.
However, family wealth management expert Salvatore Buscemi believes millennials are not ready to handle this massive influx of wealth.
Unlike previous generations who focused on saving for long-term goals like family building and retirement, millennials tend to prioritise short-term objectives. Despite living through the 2008 financial crisis, they lack the financial mindset shaped by events like World War II.
Millennials often face the challenge of supporting both aging parents and their own children, making them the most likely generation to live paycheck to paycheck, according to LendingClub.
This “sandwich generation” might struggle with managing inherited wealth compared to those who earned it themselves.
Paul Hokemeyer, a clinical psychotherapist, notes that people who earn their wealth are confident in their ability to rebuild if they lose it, while those who inherit it often feel insecure. However, millennials may approach wealth more responsibly, using it to make a positive impact on the world.
