What: Millennials now earn more in real terms than previous generations at the same age in 29 of 32 rich countries, with Italy, Greece and Japan the only exceptions, according to The Economist's analysis.

Why it is important: The generation long portrayed as struggling now holds real economic and decision-making power, while the inheritance it awaits may translate only partly into spending, as most of the wealth still sits with baby boomers.

The Economist's analysis of 32 rich countries finds that millennials, now aged between their early 30s and mid-40s, have higher inflation-adjusted incomes than previous generations at the same age in 29 of them. Italy, Greece and Japan are the exceptions: at 30, Italian millennials earned 10% less than Gen-Xers at that age.

The reversal from the 2010s, when youth unemployment in Greece exceeded 50%, stems from a strong labour market and demography: covid-19 accelerated retirements, with one American study counting 3m excess retirees by late 2022, and working-age populations are falling in ten of the 38 OECD countries.

Home-ownership is catching up. Among the oldest American millennials, now in their 40s, it matches Gen X, and British millennials halved a 20-point gap with previous generations between 30 and 40. Later marriage, with American men's median age at first marriage now 31, partly explains the delay.

Millennials account for nearly a tenth of American billionaires and 14% of Congress. Bequests equal about 10% of GDP a year across rich countries, and the median inheritance for people in England born in the 1980s is expected to reach around £136,000, against £66,000 for those born in the 1960s, according to the IFS.

IADS Notes: The inheritance windfall expected for millennials should be weighed against the share of the transfer that will actually reach consumer spending: baby boomers hold around $93 trillion in assets, yet only about $36 trillion is expected to pass to Gen X and millennial heirs over the next 20 years, and only around $8 trillion is likely to translate into consumption, concentrated in housing, travel and retail (Visa, July 2026). In the meantime, much of that wealth stays with older shoppers, who combine purchasing power, brand loyalty and growing digital fluency while remaining overlooked by an industry focused on younger consumers (Financial Times, December 2025), and some fashion brands now design for a life stage rather than an age, seeking to appeal to a 35-year-old while staying credible to a 65-year-old (BoF, October 2026). The generational handover is also reshaping the workplace, as baby boomer retirements and younger workers' reluctance to take on traditional management roles destabilise succession models (Seramount, January 2026). Further ahead, Gen Z's preference for experiences, ethics and authenticity over material consumption is already pushing retailers towards experiential and digital models (Forbes, February 2026).

Millennials now out-earn previous generations in most rich countries