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Over the next two decades, the United States will experience an unprecedented shift of demographics and finances that will likely be felt by every American. Baby Boomers, the generation of people born between 1944 and 1964, are expected to transfer $30 trillion in wealth to younger generations over the next many years. This jaw-dropping amount has led many journalists and financial experts to refer to the gradual event as the “great wealth transfer.”
Primary Generations Alive Today
Asset Distribution by Generation and Age
Generation
Wealth (2019)
Population (2019)
Wealth/Person
Silent Generation & Older
$18.8 Trillion
23.0 Million
$817,391
Baby Boomers
$59.4 Trillion
71.2 Million
$834,270
Generation X
$28.6 Trillion
65.0 Million
$440,000
Millennials
$5.0 Trillion
72.6 Million
$68,871
Assets Held by Age (Percent of Total, 2020)
70+
55–69
40–54
≤39
Real estate
21.6%
20.5%
27.6%
37.9%
Consumer durables
3.8%
3.6%
5.2%
9.4%
Corporate equities and mutual fund shares
24.6%
23.1%
18.6%
8.1%
Pension entitlements
16.3%
25.0%
21.9%
21.0%
Private businesses
7.9%
9.7%
12.1%
8.1%
Other assets
25.8%
18.1%
14.7%
15.5%
Generational Investing Trends
45% gen X says that their top financial goal at 27 was to buy a home compared of only 23% of millennials today
67% millennial investors want a computer generated recommendation as a basic component of their investing platform compared to 30% of baby boomers and gen x
66% of millennials are confident about investment opportunities in the next 12 months vs 49% baby boomers
87% of millennials believe that environmental, social and governance factors are an important when deciding among investment opportunities, compared with 65% of Gen X and only 48% of baby boomers
50% of millennials count on fintech startups to overhaul banks
59% of millennials in the UK are likely to use an online platform to manage their saving
Reason for not Investing
Millennials
Gen X
Boomers
Recognize future outlook would be better if they start investing
72%
73%
57%
Want to try out investing with a low money commitment
35%
31%
25%
Afraid of losing everything
42%
29%
28%
Too worried about current financial situation to think about future
49%
46%
32%
Find information about investing difficult to understand
63%
59%
55%
Don’t have enough money to start investing
55%
59%
56%
Wealth Transfer Forecast
Millennial Fast Facts
7 out of 10 millennials define financial stability as being able to pay all of their bills each month
Millennials feel to conform to the financial habits of their peers comes from social media, where financial milestones such as home and car purchases are routinely posted for all to see and envy
4 out of 5 people aged between 18 and 34 in the US own smartphones
4 out of 5 smartphone owners are smartphone shoppers
84 per cent of them use their phones to help them shop while in a store
Prefer smaller specialty stores like Lululemon and Ulta rather than department stores, because they feel that they offer greater value for money and better service
Generation of convenience, who like to find something quickly and have it delivered to them fast
Value focus is still very powerful for millennials – enough to warrant them going to discount stores
Millennials look at ingredient labels a lot and try to buy fresh, organic and natural foods
Millennials today don’t care about cars: cities are growing, smartphone mobility provides freedom, and delayed family formation makes it easier to use public transport
millennials today don’t care about cars: cities are growing, smartphone mobility provides freedom, and delayed family formation makes it easier to use public transport
With less to spend, they’re putting off commitments like marriage and home ownerships.
“Which online activities do you regularly do for fun and entertainment?”: video games, IM/chat, download music/video, use social media, watch tv online
Millennials have been reluctant to buy items such as cars, music and luxury goods. Instead, they’re turning to a new set of services that provide access to products without the burdens of ownership, giving rise to what’s being called a “sharing economy.”
Millennials are turning to brands that can offer maximum convenience at the lowest cost
57% of millennials compare prices in store
When marketing to Millennials, a strong brand isn’t enough to lock in a sale.
Millennials are turning to their online networks when making purchasing decisions.
Quality is still key for Millennials, but price is a more important factor than it is for other generations.
