Millennials are poised to inherit trillions of dollars previously held by boomers. What happens next could be one of the most radical shake-ups in history.
We are on the cusp of the largest intergenerational wealth transfer in human history.
In Australia alone, where baby boomers make up less than 25% of the population but hold more than half the wealth, $3 trillion is expected to pass down to millennials over the next generation.
Across the world, this figure is expected to exceed $100 trillion by 2050.
The ugly truth is that much of the wealth that Millennials will receive is dirty money, earned on the back of industries that harm people and our planet.
Not that we can blame individual boomers for this. As far as most of them were concerned, they were simply putting their money in the bank, saving for their future.
Some banks and superannuation funds have started to shift some lending and investment into areas such as renewable energy. However, many also continue to invest in industries such as the production of nuclear weapons and fossil fuels.
Australian financial institutions have collectively loaned $70 billion to dirty fossil fuel projects over the past decade.
The good news is that there is a growing number of alternatives that only invest customers’ money in ethical investments.
Clean money is simply money that doesn’t harm people or the planet; ideally, it will proactively be used to create positive social and environmental change.
The easiest way to join the clean money revolution is to make sure every cent you put in the bank is going towards ethical investments rather than propping up harmful industries.