Millennials are poised to be the wealthiest generation in history, but are they ready to handle the large inflow of money?
A vast $90 trillion wealth transfer over the next 20 years will likely make millennials “the richest generation in history,” according to estimates from global real estate consultancy Knight Frank.
It found that the so-called silent generation — those typically born between 1928 to 1945 — and baby boomers — born from 1946 and 1964 — will “hand over the reins” to millennials — those born between 1981 and 1996 — when they pass on their assets.
Millennials have been portrayed as lazy and frivolous spenders, more keen to open their purse strings for avocado toasts instead of saving for a house — so just how equipped are they in managing the seismic flow of income?
“The millennials are very ill prepared … they’re not as well prepared as the wealth creating generation,” Salvatore Buscemi, co-founder and managing partner of multi-family office Brahmin Partners told CNBC.
By the time the millennials inherit this wealth, they will be in their 40s and may not have the aptitude for starting their own business or for investing, he elaborated.
“They don’t have the skill sets earlier on to be able to do that because they never had to – they were never pushed,” he said.
