New study traces the future of millennials at the intersection of tech and wealth
In response to widely held misconceptions about the millennial generation, a recently published study by global financial services firm UBS sought to challenge popular assumptions through a better understanding of millennials’ behaviors/preferences in the pivotal realms of tech and wealth.
Due to factors like entrepreneurial activity and income growth, millennial wealth is expected to reach a whopping $24 trillion, i.e. 1.5 times the size of the U.S. economy, by 2020 — that’s less than three years ahead.
“The values and traits of this generation will have significant implications for governments, NGOs, and businesses worldwide,” the study report reads.
But it turns out millennials (deemed a self-obsessed generation by many) are hardly keeping the wealth for themselves, as they have proved time and time again to care increasingly about social and sustainability issues.
“With their access to future capital and quick adoption of technology, [millennials] can drive the use of private wealth for public good and push for development of progressive solutions and purposeful projects,” the report explains.
And while their parents view legacy for family, connections and exciting experiences as the most important forms of wealth, millennials prioritize exciting experiences as their top form of wealth, followed by legacy and luxury.
This being said, the study cites level of education, ambition, flexibility/adaptability and resilience as the top four factors millennials in developed markets expect will influence their financial security. The same ranking goes for emerging markets, with resilience being nonetheless replaced by tech skills.
Speaking of technology, the study clearly positions millennials as the leading generation in driving the use of digital solutions, notably as the first ever age cohort to grow up in smartphone-connected households.