A recent report from a leading think tank has shed light on the future financial prospects of Millennials and Gen Z, revealing that they may have to wait longer than expected to benefit from the projected $31 trillion wealth transfer that is set to take place by 2033. The report, which was conducted by the Institute for Economic Policy Research, highlights the challenges that younger generations will face in accessing this massive wealth transfer.
According to the report, the $31 trillion wealth transfer is expected to come from the Baby Boomer generation, who are set to pass on their assets to their children and grandchildren over the next decade. However, the analysis suggests that Millennials and Gen Z may not see the full benefits of this transfer until much later in life, due to a variety of economic factors that are impacting their ability to accumulate wealth.
One of the key factors contributing to this delay is the rising cost of living and stagnant wages that many Millennials and Gen Z individuals are facing. With student loan debt at an all-time high and housing prices continuing to soar, younger generations are finding it increasingly difficult to save and invest for their future. This, in turn, is delaying their ability to build wealth and take advantage of the impending wealth transfer.
Additionally, the report points to the changing landscape of work and retirement as another factor that will impact Millennials and Gen Z’s ability to benefit from the wealth transfer. With the gig economy on the rise and traditional pension plans becoming less common, younger generations are facing greater uncertainty when it comes to their financial futures. This uncertainty could further delay their ability to access the wealth that will be passed down from the Baby Boomer generation.
Despite these challenges, the report also offers some potential solutions for Millennials and Gen Z to overcome these obstacles and secure their financial future. These include investing in education and skills training to increase earning potential, taking advantage of employer-sponsored retirement plans, and seeking out financial advice and guidance to make informed decisions about saving and investing.
Overall, the report serves as a wake-up call for Millennials and Gen Z, highlighting the need for proactive financial planning and decision-making in order to benefit from the $31 trillion wealth transfer that is projected to take place by 2033. By taking steps now to address these challenges, younger generations can position themselves for a more secure financial future and ultimately benefit from the wealth that will be passed down to them in the years to come.