Wealth Watch

Millennial And Gen Z Wealth Reaches New Heights

For financial advice providers, this younger cohort is becoming increasingly impossible to ignore

A new report from Cerulli Associates assess the current trends regarding generational wealth.

February 28, 2024, BOSTON—The financial assets of Millennials and Generation Z grew the most of any generation over the last three years. Gen Z, the youngest generational cohort, recorded nearly $6 trillion in financial wealth—up from $2 trillion in 2019.[1]

While all generations saw their wealth increase, Millennials and Gen Zers in particular were aided by large increases in ownership of both stocks and retirement accounts. By the end of 2022, a majority of Millennials and Gen Zers (55%) held a retirement account either through their employer or acquired independently—a six-percentage-point increase from 2019. Additionally, the retail trading boom of the early 2020s affected this group the most, with 22% now owning individual stocks and 9% owning pooled assets including mutual funds and ETFs, up from 13% and 6%, respectively.

“At 44 million households strong—and counting—this younger cohort increasingly is becoming impossible to ignore,” says John McKenna, research analyst. “With their financial wealth growing at a massive rate alongside the complexity of their assets, they are prime candidates for formal advice relationships beyond just a brokerage account and a local bank teller. As the retiree and near-retiree markets become more saturated, younger investors represent a chance for advisors to build relationships that could last through five decades, growing in wealth each step of the way.”

For asset managers, having advisors and financial planners of these generations will provide perspective on the unique challenges facing Millennials and Gen Zers and will help deliver the strongest advice solutions possible given their particular needs. “While these younger investors might not be the wealthiest cohort today, advisors willing to take the leap could be rewarded with long-term clients and a strong competitive advantage as older households fully enter the decumulation phase of their lives,” concludes McKenna.

 

 

 

[1] Source: 2022 Survey of Consumer Finances, Federal Reserve
About Cerulli Associates
For over 30 years, Cerulli has provided global asset and wealth management firms with unmatched, actionable insights.
Headquartered in Boston, Cerulli Associates is an international research and consulting firm that provides financial institutions with guidance in strategic positioning and new business development. Our analysts blend industry knowledge, original research, and data analysis to bring perspective to current market conditions and forecasts for future developments.