A new report from Bank of America predicts that Generation Z is on track to become the wealthiest generation in history by 2035. This projection is driven by significant wage growth and the "Great Wealth Transfer," where trillions of dollars will be inherited from baby boomers. By 2045, approximately $84 trillion is expected to be passed down, with Gen Z receiving 38% of this wealth.
Despite facing financial challenges such as debt and high living costs, Gen Z's economic outlook is promising. According to the New York Post, Gen Z is expected to amass $36 trillion in income by 2035, which is projected to more than double to $74 trillion by 2040. This would make them the largest and wealthiest generation, accounting for around 30% of the global population.
Financial expert Amanda Frances highlights Gen Z's digital fluency as a key factor in their economic rise. Their proficiency in fintech, e-commerce, and AI-driven businesses provides unprecedented access to wealth-building opportunities. The generation's spending habits are also noteworthy, as they currently spend more than they save, which is expected to redefine consumer behavior in the U.S.
Bank of America notes that younger investors, including Gen Z, are increasingly interested in sustainable and impact investing. This shift in investment preferences is expected to influence market trends as the Great Wealth Transfer unfolds.
As Gen Z prepares for this financial transformation, experts advise them to focus on building assets, investing early, and embracing innovative income streams. By doing so, they can maximize the potential of their inherited wealth and lead the next economic boom.