# Is the world ready for the greatest wealth transfer in history?
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-08-25
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: The 100 Trillion Dollar Wealth Transfer: Is the World Ready?
Meta Description: Get ready for the largest wealth transfer ever! Ken Costa explores the shift from Boomers to Zennials, sparking a new era of inclusive and socially-driven
URL: https://financedigest.com/is-the-world-ready-for-the-greatest-wealth-transfer-in-historyhtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/qualifications-required-to-become-a-wealth-management-consultant-1736813637807-compressed.jpg)

# **Is the world ready for the greatest wealth transfer in history?**

![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/ken-costa-1736813637751-compressed.jpg)

_By_ **_Ken Costa,_** _seasoned investor and author of The 100 Trillion Dollar Wealth Transfer: How the Handover from Boomers to Gen Z Will Revolutionize Capitalism_

Change is inevitable. As generations age, the status quo will undoubtedly shift, in all aspects of society, and that includes finance and wealth.

In the [next ten years](https://www.financedigest.com/esa-chief-sees-ariane-6-debut-launch-delayed-to-next-year.html "ESA chief sees Ariane 6 debut launch delayed to next year"), we are primed to witness a major shift in the demographic that controls of the world’s finances and associated institutions. What we must ask is of is not a matter of ‘if’, but ‘how’.

How can we ensure it is carried out smoothly and successfully? How can we make this beneficial for all generations? These are the pertinent questions for this one-in-a-generation shift that I explore and address in my new book, _The 100 [Trillion Dollar](https://www.financedigest.com/analysis-u-s-banks-face-trillion-dollar-reverse-repo-headache.html "Analysis: U.S. banks face trillion-dollar reverse repo headache") Wealth Transfer: How the Handover from Boomers to Gen Z Will Revolutionize Capitalism._

## **A cross-generational shift: from Boomers to Zennials**

This enormous transfer of assets will take place between the so-called ‘baby boomer’ [generation to today’s millennial and Gen](https://www.financedigest.com/gen-z-significantly-prefers-user-generated-content-older-millennials-lean-toward-streaming-inmobi-insights-survey-shows.html "Gen Z Significantly Prefers User-Generated Content, Older Millennials Lean Toward Streaming, InMobi Insights Survey Shows") Z cohort. It is [estimated](https://www.cnbc.com/2022/10/17/how-to-navigate-the-great-wealth-transfer-according-to-top-advisors.html) that over $100 trillion will pass from the hands of boomers in what will be the biggest wealth transfer ever.

Not only will we see a monetary shift, but the change will also involve our economy and society more broadly. With money comes power, and ‘Zennials’ (Millennials and Gen Z) will have the opportunity to use these newly acquired assets to champion their own causes. With the [younger generations’](https://www.financedigest.com/british-monarchys-fashion-mantle-passes-to-younger-generation.html "British monarchy’s fashion mantle passes to younger generation") emphasis on environmental protection and a greater awareness of ethical and social responsibility, they are steering the markets towards a future that will allow these values to be carried out.

However, the divisions between older and younger generations have never been starker. Zennials have proven that they have the power to restabilise the institutions that have not served them well and fail to consider their needs. If our existing political and financial institutions are to survive, they must also consider the [demands of younger generations](https://www.financedigest.com/rising-investments-in-renewable-power-generation-to-amplify-demand-of-substation-monitoring-system-market-fact-mr-report.html "Rising Investments in Renewable Power Generation to Amplify Demand of Substation Monitoring System Market: Fact.MR Report") into account.

## **The three ‘CO’s: collaboration, compassion, community**

[Management of the wealth transfer must be driven](https://www.financedigest.com/tinnitus-management-market-to-top-us-3-2-bn-driven-by-growing-burden-of-hearing-disorders-fmi.html "Tinnitus Management Market to Top US$ 3.2 Bn Driven by Growing Burden of Hearing Disorders: FMI") by what I call ‘CO’: collaboration, compassion and community. It is with these qualities that a more inclusive, purposeful and socially energised capitalism can be built.

Zennials possess the [insight style=”font-weight: 400;”> to create a socially energised capitalism, but they cannot undertake this dramatic financial transition alone. Boomers can provide decades of experience, wisdom and](https://www.financedigest.com/energy-costs-for-most-british-households-to-fall-18-from-july-cornwall-insight.html "Energy costs for most British households to fall 18% from July -Cornwall Insight")[_hindsight._ These combined skills are crucial for the wealth transfer to have a](https://www.financedigest.com/energy-costs-for-most-british-households-to-fall-18-from-july-cornwall-insight.html "Energy costs for most British households to fall 18% from July -Cornwall Insight") [successful outcome](https://www.financedigest.com/world-stocks-climb-on-hopes-of-successful-debt-ceiling-outcome.html "World stocks climb on hopes of successful debt ceiling outcome"), in a new form of knowledge that I call _foresight_ in my book.

A survey in the United States have revealed that in the next ten years, 15% of adults, mostly part of the millennial and Gen Z cohorts, expect to receive a significant inheritance. However, there is a clear lack of confidence in how to manage their new financial status. Only 25% of millennials and 18% of Gen Z surveyed said they felt “very comfortable” handling their funds.

It appears that the younger generation is keen to seek advice and guidance too, with 64% stating they trust the advice of established [wealth management](https://www.financedigest.com/ubs-goes-on-hiring-spree-for-wealth-managers-catering-to-rich-americans.html "UBS goes on hiring spree for wealth managers catering to rich Americans") organisations (source: Broadbridge). There will be fierce [competition within the industry](https://www.financedigest.com/anti-snoring-devices-and-snoring-surgery-market-strategic-analysis-to-understand-the-competitive-outlook-of-the-industry-2024.html "Anti-snoring Devices and Snoring Surgery Market Strategic Analysis to Understand the Competitive Outlook of the Industry, 2024") for this Millennial and Gen Z customer base. Wealth management organisations need to be attuned to the [needs](https://www.financedigest.com/banks-need-better-model-risk-management-heres-how-to-build-a-robust-framework.html "Banks need better model risk management – Here’s how to build a robust framework") of the younger generation and guide them as they continue to form their views about financial management.

As a Boomer myself, I feel a responsibility to work with Millennials and Gen Z to ensure their insight and own, valuable experience is not lost throughout the process. We can fill the gaps in each other’s knowledge.

## **Technology will take precedence**

One of these areas that is certainly new to the Boomer generation is technology. Millennials and Gen Z are absolutely ‘digital natives’, [leading the way](https://www.financedigest.com/leading-the-way-in-esg-the-transition-to-a-cardless-ecosystem.html "Leading the way in ESG: the transition to a cardless ecosystem") in the adoption of new technologies, from social media to remote working to cryptocurrency.

Millennials and Gen Z grew up in a thoroughly digitised society and this will continue to be the environment the wealth transfer takes place in as well as influence the new types of ‘less traditional’ assets they choose to invest in. In all aspects, from markets to infrastructure, technologically driven strategies and solutions are expected to be the norm.

## **Millennials and Gen Z are motivated by social issues**

Above all, it is the passions and concerns close to the hearts of Millennials and Gen Z that will be – and already are – [driving the markets](https://www.financedigest.com/feasibility-of-interoperability-to-drive-the-disinfection-robots-market.html "Feasibility of interoperability to drive the Disinfection Robots Market").

Climate change, equality and diversity, [home ownership and the rental market](https://www.financedigest.com/digital-out-of-home-market-to-register-a-cagr-of-11-0.html "Digital Out-of-Home Market to register a CAGR of 11.0%"), protest movements and the re-evaluation of history are all issues that are influencing their clear-set goals. Research has shown that this cohort prioritises “self-betterment and self-fulfilment” by means of [personal](https://www.financedigest.com/top-8-must-know-personal-finance-facts-for-2023.html "Top 8 Must-Know Personal Finance Facts for 2023") growth and mental health in contrast to previous generations who measured this by financial growth (source: Onramp Invest).

Undoubtedly, this is one of the many examples of generational differences advisors must actively identify and bridge over. But rather than [fearing these contrasts as a source of conflict](https://www.financedigest.com/oil-climbs-on-growing-fears-of-conflict-over-ukraine.html "Oil climbs on growing fears of conflict over Ukraine"), we must look at them with an attitude of growth and openness, that it can always be resolved. The immense risk is that the divisions continue and we lose sight of value creation and incentive based market economy; it is an urgent task for the boomer generation to defend these vigorously if socially energised capitalism remains a [robust market](https://www.financedigest.com/dental-implants-and-prosthetics-market-market-to-grow-at-robust-cagr-by-2028.html "Dental Implants and Prosthetics Market Market to Grow at Robust CAGR by 2028") driven activity.

By listening to each other, finding common ground and [building a workable plan for the future](https://www.financedigest.com/building-privacy-into-ai-is-the-future-federated.html "Building privacy into AI: is the future federated?"), we can build a socially energised capitalism, one that will thrive and work for the benefit of all generations.


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---