Mon, 24 May 2021 | demographics wealth
According to a new report from Boston Private examines how perceptions of wealth differ by generation, and how those perceptions shifted during the Covid-19 pandemic. The “Why of Wealth” survey found that there are significant differences in the ways individuals across age groups understand and define wealth:
Millennials define wealth as: Happiness, success, and power and influence, while Generation X defines wealth as: Success, happiness, and health. Baby Boomers and the Silent Generation define wealth as: Peace of mind, financial capital, security, and independence.
Furthermore, 89% of Millennials (average age 36) surveyed reported that the Covid-19 pandemic impacted the way in which they define wealth, compared to 75% of Gen X (average age 46) and just 24% of Baby Boomers and Silent Generation (average age 66).
Overall, respondents associate wealth with positive outcomes and feelings – emphasizing that it gives them the freedom to live the life they want — despite experiencing a year marked by loss and curtailed freedoms. When examining the potential long-term influence of Covid-19 on perceptions of wealth, Millennials register the largest impact, with nearly 80% saying the pandemic changed how they will use their wealth in the future. Over half of all respondents say the pandemic has improved their donations and philanthropic commitment (52%). The same number also improved their saving levels (52%) and their relationship with their financial advisor (51%).
“The Why of Wealth report sheds light on our highly emotional relationship with wealth, and how those relationships are influenced by age, profession and our lived experience,” said Gerald Baker, Head of Trust & Fiduciary Services at Boston Private, and co-head of its Center for Wealth Planning Excellence. “Better understanding these emotional drivers helps advisors to be more responsive to the needs of our clients and support them in realizing the deeply meaningful goals they have for their families, businesses and communities.”
Source: Boston Private