Millennials are set to be the 'richest generation' ever, according to a new report, but only when their parents and grandparents die.
Thinking about what will happen when your parents pass away is a sombre thought, especially if you and your children are particularly close to them. While a millennial's upbringing might be very different to how they are choosing to raise their own kids, the difference in wealth of millennials compared to their parents and grandparents can be just as stark. For baby boomers (those born between 1946 and 1964), getting on to the property ladder was much easier than it is for millennials - UK property prices have risen by 158 per cent over the last 50 years, according to mortgage lender Together, and the average age of first time buyers was just 27 years old 50 years ago, compared to 34 years old today. In fact, according to reports, 20 per cent of millennials rely on their parents to provide them with a house deposit to get on the ladder in the first place. But a new research suggests that the financial struggle faced by millennials could shift in the next 20 years.
According to its upcoming Annual Wealth Report (due for release on 6 March 2024), estate agent Knight Frank says that there is £2.5trillion in wealth tied up in the homes of older generations, which will be freed up and transferred to millennial (born between 1980 and 1994) relatives in the next two decades, leaving them the richest generation ever. These older generations include the silent generation (born from 1925 to 1945), the baby boomers (1946-1964), and the oldest cohort of Generation X (1965-1979).
Although losing a family member is always difficult, especially when you have to have those upsetting conversations with your kids, those set to inherit their parents' estate could benefit from the injection of cash to help ease the pressure on their family finances, and help get younger families on the property ladder.
When you consider that recent statistics suggest that those millennials who don't already own a home, could see themselves still renting as they head into retirement, that transfer of assets could be hugely life changing. In addition, it could help cash-strapped parents to save for their child's future.
The data also suggests that this could see new trends emerge in the world of home ownership. Sustainability will be paramount as millennials seek greener homes, not only to be kinder to the planet, but also to keep energy bills down, which have been sky-high in recent years as the world came out of lockdown (although they are slowly coming back down).
In other millennial news, millennial parents beg their own parents to keep their anxieties under control to not pass them on to younger generations, and also share what they wish their parents had done differently when they were growing up.
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