Generation Z Could Become the World’s Wealthiest Generation by 2035

According to research by Bank of America, Generation Z (born between 1997 and 2012) is transforming into the most influential and wealthiest generation as early as 2035. This demographic group will become not only the largest on the planet, accounting for about 30% of the world’s population, but will also significantly surpass previous generations in terms of accumulated wealth.

Income growth forecast for zoomers

Analysts highlight impressive figures that point to the economic rise of Generation Z. According to forecasts by BofA Global Research, the global income of this generation will reach $36 trillion by 2030 and increase to $74 trillion by 2040. For comparison, in 2023 this figure was only $9 trillion. Thus, the incomes of zoomers are expected to grow fourfold in just seven years.

Spending and consumption dynamics

It is interesting to note that even today representatives of Generation Z demonstrate a high propensity to spend. According to the study, their spending on essential goods and discretionary purchases is growing much faster than the population average. Global spending by zoomers is projected to reach $12.6 trillion by 2030. At the same time, the spending of Generation Z representatives is almost twice as high as their current savings, which may be linked to the high cost of living and pressure on household budgets. Young people actively spend on rent, education, basic necessities, and affordable luxury, while simultaneously creating new consumption trends.

Two key sources of future wealth

Career growth and rising wages will be the first driver of Generation Z’s economic ascent. As they gain experience and develop professional skills, the salaries of young specialists will increase significantly, helping to strengthen their financial position. The second, no less important factor will be the “great wealth transfer” between generations. By 2045, approximately $84 trillion will pass from older generations to millennials and zoomers. Although most of this inheritance will go to millennials, about 38% of young people expect to receive an inheritance from their relatives. This inheritance, combined with growing income from work, will sharply increase the economic influence and wealth of zoomers.

The gap between earnings and unemployment

However, the current labor market situation raises certain concerns. Representatives of Generation Z are facing increasingly difficult conditions when searching for jobs. The number of households receiving unemployment benefits increased by nearly 32% year over year in February, and unemployment among new labor market entrants continues to rise. Many young people are forced to take positions that do not suit them, postponing costly life plans such as purchasing their own home or having children. Despite this, analysts are confident that as careers develop, these problems will gradually be resolved.

Changing consumption models and lifestyle

Generation Z is redefining traditional consumer concepts through its preferences and values. Young people actively support trends in sustainable luxury, digital commerce, wellness services, pet care, and entertainment within the gaming industry. Research shows that zoomers lead a more balanced lifestyle compared to previous generations. They go to bed early, even on holidays, and significantly reduce alcohol consumption. These lifestyle changes reflect a conscious approach to health and well-being.

Generation Z’s impact on the global economy

According to Bank of America’s conclusion, Generation Z will become one of the most disruptive generations for the economy, markets, and social systems. This does not mean catastrophe, but rather profound transformation. Whether it is changes in diet, a shift to new savings models, or the rejection of traditional forms of consumption, zoomers will radically reshape the market landscape. Companies and business structures are already adapting their offerings to the priorities of this generation, understanding that it is they who will define economic trends in the coming decades. From clothing manufacturers to financial services, all industries are preparing for the power that Generation Z will acquire.

Conclusion: the rise of a new economic elite

By 2035, Generation Z may indeed become the wealthiest generation in world history. Although many of its members are experiencing financial difficulties today, the combination of rising incomes driven by career growth and significant inheritance from older generations will create an unprecedented level of material prosperity. Companies, investors, and society as a whole must be ready for the transformation that this ambitious and socially conscious demographic will bring.