Rich Gen Zers expect wealth increase in 2024—but they’re likely relying on the bank of Mom and Dad
Despite being at the mercy of record-high interest rates, property prices, and student debt, there’s a sizable chunk of Gen Zers who remain unfazed by the current economic conditions. In fact, the lucky few who have already made the big bucks before hitting 30 years old believe they’re about to get wealthier.
That’s according to the property broker Knight Frank, which picked the brains of those with a net worth of over $1 million or an annual income of $200,000 or more for its 18th edition of the Wealth Report.
A staggering 75% of Gen Z high-net-worth individuals expect to see their wealth increase in 2024. Of that group, 43% even expect to see “significant growth.”
What’s more, Gen Z isn’t just feeling confident about their financial game in 2024—they stand out as the most self-assured generation of all.
Despite having only joined the workforce a handful of years ago, Gen Z has more self-confidence than Gen X and baby boomers who have had decades to amass wealth, build property portfolios, climb the corporate ladder, and dabble in investments.
“A clear pattern emerges when data is analyzed by age: younger affluent groups are more confident about the economic outlook compared with older groups,” the report says.
While three-quarters of rich Gen Zers expect their wealth to balloon this year, just over half of baby boomers feel the same.
Even Gen Zers who aren’t rich are optimistic
The data didn’t delve into why Gen Z feels especially prosperous. But separate recent research has uncovered that the entire generation is surprisingly upbeat about the economy right now.
While more, than a third of 18-24-year-olds believe the economy will bounce back over the next five years, less than a quarter of older millennials and Gen Xers feel the same.
At the same time, young respondents were the most likely to have seen their salary increase in the last year: Gen Z were twice as likely as those over 65 to have recently received a pay rise. They’re also most likely to expect their pay to increase in the next 12 months.
So fears about how rising inflation and spiraling costs will impact them may have been squashed by their employers’ throwing cash at them, potentially giving them a false sense of security.
Plus, this is the first economic crisis Gen Z have experienced as an adult in the workforce, and they’re ready to use a downturn in their favor.
Having seen the rich get even richer in previous recessions thanks to smart investments, young people today are ready to pounce on real estate opportunities.
“Property remains key for all wealthy groups,” Knight Frank’s report revealed, adding that young ultra-wealthy individuals are the “most active” in property investing.
But they’re likely relying on the bank of Mom and Dad
At a maximum of 27 years old, it’s unlikely that the $200,000+ p/a Gen Zers that Knight Frank surveyed are all big-shot executives who climbed the corporate ladder and earned a fortune in less than a decade.
Much like millennials, rich Gen Z are probably upbeat about their financial prospects because they’re being bankrolled by their wealthy parents.
“Over the next 20 years, a massive transfer of wealth and assets will occur as the silent generation and baby boomers hand over the reins,” the report says.
The shift will see US$90 trillion of assets move between generations in the US alone, making affluent millennials “the richest generation in history” by Knight Frank’s estimation.
Separate figures show that Gen Z is set to cash in too.
According to wealth management firm Cerulli Associates, some $53 trillion will be passed down from boomers to their young heirs. Meanwhile, another report shows that one in five young adults are expecting to gain around $750,000 from the death of their parents or a family member.
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