An emerging socio-demographic group is on course to become the most affluent generation by 2035, according to a new study by Bank of America’s research arm.

Bank of America Global Research says that Generation Z (those born roughly between 1997 to 2012) will become the “largest and richest generation by approximately 2035.” A large part of the growth in wealth will occur over the coming years. Between 2023 and 2040, Gen Z’s wealth is projected to skyrocket by around 720%, according to Bank of America.

“It looks like Generation Z (Gen Z) is on the cusp of making its mark on the global economy. Not only is this group expected to be the largest cohort of the global population over the next 10 years at approximately 30%, but their income is also expected to surge. In roughly the next five years, Gen Z will have globally amassed $36 trillion in income and that figure is expected to surge to $74 trillion by around 2040.2 Consider that in 2023 it was just $9 trillion.”

Within the Bank of America, credit and debit card data shows that growth in Gen Z’s spending per household is stronger than the overall population. And in general, Gen Z possesses “higher discretionary and necessity spending growth than the average consumer.”

“Beyond income levels, Gen Z could also see the largest increase in spending. By 2030, their global spending is expected to reach $12.6 trillion compared to $2.7 trillion as of 2024. Thus, it’s likely they will be among the most disruptive generations to economies, markets and social systems. Whether it’s due to changing diets or reduced alcohol consumption or saving and housing, Gen Z will redefine what it means to be a US consumer.”

While Bank of America says that Gen Zs are facing increasingly difficult labor market conditions, data shows that the emerging demographic group is witnessing higher wage growth compared to other generations.

“In fact, using Bank of America deposit account data, we found wage growth for Gen Z was up nearly 8% year-on-year in February – the most among all generations – and about twice as high as the overall median. Part of this is because Gen Z job seekers largely are entering the labor market for the first time compared to other generations.”

The economic prospects of Gen Z could be further by boosted by the Great Wealth Transfer, according to Bank of America.

“BofA Global Research has noted that a huge transfer of wealth is expected as Baby Boomers pass down assets to younger generations, meaning that Gen Z and Millennials are increasingly likely to be making key spending and saving decisions.”

The report on Gen Z’s wealth prospects was based on aggregated and anonymized transaction data from the Bank of America.

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