Older generations are expected to hand down a huge amount of wealth to their millennial children in the form of property, stock portfolios, cash, and businesses.
This massive potential transfer of wealth could also lead to a reallocation of dollars as younger people put their money where their mouths are. For example, new Millionaires ($Melons) or Billionaires ($Bananas) might put their assets into investments that fight climate change. Roughly 4 in 5 millennials say that they are interested in cutting their carbon emissions, significantly more than baby boomers, per Knight Frank.
Redistribution through inheritance won’t be felt across the socioeconomic spectrum.
Even so, inherited wealth comes with one big caveat. It relies on generational wealth that has already been created. This means that redistribution through inheritance won’t be felt across the socioeconomic spectrum. In other words, this wealth transfer will be largely concentrated among already affluent families, making inequality more entrenched.