This Generation Is Projected to Be the Richest by About 2035, New Study Says

A new study suggests Gen Z is poised to become the richest generation in history — but it’s not for the reasons you may think.

Gen Z, which is defined as people born between the years 1997 and 2012, are set to amass about $36 trillion in roughly the next five years and more than $74 trillion by approximately 2040, according the recent report published by Bank of America researchers.

The reason? A “huge transfer of wealth” from Baby Boomers as they pass down assets to younger generations in the coming years, per the report.

This also means that Gen Z people — who currently exhibit more spending on both essentials and non-essentials compared to previous generations — is expected to have a huge impact on global spending patterns.

“It’s likely they will be among the most disruptive generations to economies, markets and social systems,” the researchers predict.

In the meantime, however, the study’s authors note that Gen Z continues to face financial and economic challenges.

On average, they spend “twice as much” as they save, which the report notes could in part be due to the current high costs of living. And while more of Gen Z people hold both two-year and four-year degrees as compared to Millennials and Generation X did at their age, they are generally underemployed due to a tough job market. 

Additionally, almost a third of Gen Z reported feeling "behind" where their parents were at the same age in terms of meeting their financial goals, per the bank's 2024 Better Money Habits survey.

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The report further explains that the number of Gen Z-led households receiving government unemployment grew by nearly 32 percent between February 2024 and February 2025, per Bank of America deposit account data.

While speaking to the New York Post, financial literacy expert Amanda Frances advised Gen Z to “prepare” for their changing place in the global economy, including “positioning themselves internally with their mindset and beliefs around money and externally with their practices for growing wealth.”

She recommended becoming “investors,” not just consumers, and suggested investing as early as it “can snowball into massive wealth later.”

Frances also tells the Post that Gen Z has an advantage that older generations do not: “Their digital fluency gives them unprecedented access to wealth-building opportunities through fintech, e-commerce, content creation and AI-driven businesses,” she explained. “The ones who embrace innovation will lead the next economic boom.”