Wealth is changing hands, and so is its meaning. Millennials and Gen Z are rewriting the rules, turning their massive incoming $90 trillion inheritance from the baby boomer generation into a powerful tool for innovation, sustainability and purpose…
When the single “Last Christmas” was released by Wham! in 1984, the duo’s frontman, George Michael, was just 21 years old – a rising star navigating fame with, as it later transpired, extraordinary grace and kindness.
Though the Whamageddon hit famously missed out on the UK’s annual Christmas Number One chart spot – the gong went to Band Aid’s charity single “Do They Know It’s Christmas?” – George turned his disappointment into altruism, donating all the profits from his runner-up song to Ethiopian famine relief.
Turns out that gesture was just the beginning of a habit for the young star who would go on to secretly give away millions over the years. From supporting AIDS and children’s charities to funding IVF treatments, George Michael was the embodiment of generosity at a tender age, demonstrating how wealth can be a powerful tool for good when paired with purpose.
“Last Christmas I gave you my heart. / But the very next day you gave it away.” George soon learned the longer-term and more appreciated benefits that charity-donors could bestow. (Alamy)
Forty years later, and nearly a decade after his death in 2016, George Michael’s legacy seems to have had an echoing effect on younger generations. Often dismissed as Generation Rent, adrift in economic turmoil, burdened by loans, sky-high rents and a passion for avocado on toast, millennials (born 1981-1996) and Gen Z (born 1997-2012) are proving their critics wrong in all kinds of ways.
How does the future look? Over the coming 20 years or so, a vast redistribution of assets – the Great Wealth Transfer – will occur. A monumental inheritance wave of nearly US$90 trillion globally, from old to young, is set to make these younger generations the wealthiest in history. In the US alone, this transfer is estimated to total $84.4 trillion, adjusted for recent asset appreciation.
But they’re not just taking on financial assets – they’re taking on responsibility, driving innovation, championing sustainability and transforming wealth into a force for collective good.
One thing these future wealth-holders possess is a striking optimism about their money and the potential it holds. While their parents and grandparents were just hoping to hold steady, younger generations are brimming with confidence about their financial futures.
A monumental inheritance wave of nearly US$90 trillion globally, from old to young, is set to make our younger generations the wealthiest in history. (Brooke Cagle/Unsplash)
One thing these future wealth-holders possess is a striking optimism about their money and the potential it holds… And this confidence is driving them to take risks, explore new ways to grow their money and possibly even start to reshape how society defines success.
For millennials, it’s a clear trend: 75% of men and 64% of women are expecting a jump in wealth, with nearly half predicting a significant leap forward. And this confidence is driving them to take risks, explore new ways to grow their money and possibly even start to reshape how society defines success.
It’s a trend gaining momentum around the globe. Turkey saw the fastest growth in ultra-wealthy individuals in 2023, up 10%. And it’s being fueled by women. Gen Z women are leading the charge, with a 38% rise in ultra-wealthy Gen Z women over the past decade. This is partly thanks to wealth transfers from boomer parents handing over leadership of businesses to their daughters.
As every gifting guardian, parent and relative knows, words of wisdom and cherishable advice do not always fall on open ears. Financial parcels, on the other hand, usually find a receptive audience. (Robert Eklund/Unsplash)
For boomers (born 1946-1964), home ownership was practically a given, thanks to stable jobs, fixed-rate mortgages and affordable house prices. But millennials and Gen Z have had to rethink, with many steering away from property as their main investment. That said, a good chunk of millennials still plan to buy homes: 23% of women and 21% of men are eyeing the market. Others are exploring options such as leasing or short-term rentals.
Millennials and Gen Z have had to rethink, with many steering away from property as their main investment. That said, millennials still plan to buy homes: 23% of women and 21% of men are eyeing the market.
But the Great Wealth Transfer isn’t the only way millennials and Gen Z are getting rich. Gen Z has earned the nickname Generation Startup – having grown up in a whirlwind of economic uncertainty, digital transformation and the gig economy, many see starting a business as their route to long-term success. Over 62% of Gen Zers aged 17 to 26 plan to launch their own ventures in the next three to five years. Unsurprisingly, the majority (80%) are going digital – e-commerce and mobile-first businesses unlock digital nomadism and a flexible work/life balance never considered by previous generations.
Counter to what we often hear about Millenials and the Alphabet Generation, today’s young entrepreneurs work as hard if not more so than their predecessors. (Aleh Tsikhanau/Unsplash)
Gen Z-ers are also beginning their investment journeys earlier than previous generations (average age 19, compared to 25 for millennials and 35 for boomers), according to the 2024 Schwab Modern Wealth survey. And this early investing is allowing Gen Z to grow significant wealth over time.
Millennials, meanwhile, are embracing the luxury lifestyle, splashing out on wellness retreats, travel and high-end accessories rather than focusing solely on traditional big-ticket items like cars or houses.
Of all the changes tracked across the age groups, one of the biggest shifts is the motivation to be rich. It’s not just about personal gain. For these younger generations, money is a means for making a difference. Social responsibility and sustainability are high on their agendas – 91% of Gen Z entrepreneurs say these values are core to their businesses. And among wealthy millennials, 80% are actively reducing their carbon footprints, compared to just 59% of Boomers.
According to a study by Enthuse, 31% of Gen Z regularly give more money than the overall population. They’re also embracing new ways of giving, using tools such as charitable trusts and donor-advised funds.
This new wave of philanthropy is loud, proud and purpose-driven. Unlike their older counterparts (who typically focused on financial donations to religious organizations, the arts and military charities), Gen Z isn’t hiding behind anonymous donations – they want to be recognized for their generosity, proudly putting their names to the causes they support. They want to be visible as advocates or changemakers. They also want to role-model their work for the next generation.
Bukayo Saka, the 23-year-old Arsenal footballer, has funded surgeries for children in Nigeria and provided shelter for earthquake victims. (Shutterstock Editorial)
Becky Holmes and her sister Lauren Gupta channel their family wealth (their father, Bill Holmes, founded tech company Radius) via their Helvellyn Foundation. They are deeply committed to protecting the planet’s biodiversity through initiatives such as the African Wildlife Foundation and Rewilding Britain and are passionate about inspiring other multimillionaire children to adopt similar practices.
In the world of sport, young professionals are equally inspirational. Bukayo Saka, the 23-year-old Arsenal footballer, has funded surgeries for children in Nigeria and provided shelter for earthquake victims. F1 driver Charles Leclerc, 27, has raised funds for flood victims in Italy. And Cristiano Ronaldo, now 39 and the world’s highest-paid footballer, has been recognized as the world’s most generous sportsperson. Ronaldo has donated millions to charities like Save the Children, UNICEF and World Vision. Over in the entertainment world, Stranger Things actor Caleb McLaughlin, 23, uses the foundation he set up in 2020 to promote financial literacy among young people.
Today’s Millennials and Gen Z are embracing their growing wealth not just as a financial boon but as an opportunity to leave the world in a better state.
Main image: (Marina Vitale/Unsplash)
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