The UBS report reveals some staggering findings: Millennials in China hold a mere 7% of the country's wealth, while adults under 40 in the Eurozone possess just 5% of total household wealth. Similarly, in India, those under 40 control less than 20% of the nation's wealth. Astonishingly, homeownership among individuals aged 20-29 stands at a mere 9%. These numbers highlight a reality: while global wealth inequality is commonly discussed, the generational wealth gap remains a topic often overlooked.
A deep dive into data from different regions paints a stark picture: Young people find accumulating wealth more challenging than ever. From high unemployment to rising housing costs and student debt, global Millennials are grappling with numerous challenges.
Homeownership, a historical measure of wealth, is declining for this demographic, with only 27% of 25-34-year-olds in the UK owning homes compared to 33% in 2008.
In Asian economies like Japan and South Korea, skyrocketing property prices have made homeownership an elusive dream for many young adults. Intergenerational transfers and inheritances tend to happen later in life in Asia, restricting youth wealth accumulation.
These trends underscore a pressing need for the financial system to empower the younger generations to accumulate wealth and achieve economic stability.