The millennial generation is set to be richer than their parents for the first time ever, according to a new study.
The report from Wealth-X, an international research firm, found that, according in the United States, the millennial generation will be richer on average than their adult counterparts.
Millennials have the potential to be the biggest beneficiaries of the economic recovery, with their wealth likely to increase by a whopping $2 trillion by 2035.
But as this report shows, the financial gains of the millennials will not be shared equally.
While they are likely to see their net worth increase by as much as $2.6 trillion over the next four decades, they will be largely concentrated in the top 10 percent of income earners.
A new report from the Economic Policy Institute, which is co-authored by economist Emmanuel Saez, estimates that, over the course of the next decade, millennials will only make about 20 percent of all U.S. gains in wealth.
Among other things, this could be because the millennial boom will primarily benefit the very wealthy.
“Wealth is not only about wealth,” said Saez.
“The wealth generated by this generation is likely to be more than twice as large as that generated by the baby boomers and much larger than that generated during the Great Recession.”
The report, released Tuesday, also showed that millennials have less access to credit than their older counterparts.
About 30 percent of millennials are considered in default, while the rest are in default on their mortgages.
This could be due to the recession and the increased interest rates they are facing, the report noted.
In fact, the debt burden of millennials has increased as well.
They have more than doubled their debt load in the last two years, from $33,000 to $61,000.
By 2040, the share of millennial borrowers with a default rate of at least 10 percent will be the highest among any generation.
It will be harder for millennials to access credit because of the new financial restrictions on home mortgages, and lenders are likely less willing to lend to them, the study noted.