Gen Z To Become The Richest Generation By 2035

Gen Z is projected to emerge as the dominant economic power in both size and wealth by 2035. As per a new Bank of America analysis, this generation is set to accumulate more than $74 trillion in earnings by 2040—marking a dramatic and much-needed shift from their current precarious financial footing.

Current Challenges

Paycheck-to-Paycheck LifestyleHigh rents, student debt, and gig jobs dominate. Many can’t afford homes, kids, or even commuting costs. UnderemploymentDespite being overeducated, unemployment for young workers hit 9% in February, forcing them into mismatched roles. Doom Spending Prioritizing small luxuries (e.g., pets, 99-cent noodles) over unattainable investments like housing.

Key Drivers For Growth

The Great Wealth Transfer$84 trillion from older generations by 2045; Gen Z gets a smaller cut (38%) but gains a boost from 8% YoY wage growth. Career Progression As they climb corporate ladders, wages and job stability rise.

Future Projections

Income SurgeExpected to amass $74 trillion by 2040, up from $9 trillion in 2022. By 2035, they’ll be the largest (30% of global population) and richest generation.

Spending BoomGlobal spending to jump from $2.7 trillion (2024) to $12.6 trillion by 2030, driven by discretionary splurges.

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