More UK millennials using blockchain and crypto technology
The number of millennials in the UK is growing rapidly. Many of them are entrepreneurs, work in the technology sector with crypto and earn very well. On the other hand, many baby boomers are now earning less and many of them are retiring earlier.
The number of millionaires among Britain’s Millennials and Generation Z has increased over the past year as Britons embrace crypto and move into other booming industries. City AM revealed that the number has jumped 100 percent a year to around 2,000 from an already existing record of around 1,000 last year. Bowmore Wealth Group also reported a 28 percent increase in Millennial and Gen-Z taxpayers. 50,000 people reported earning over £150,000 a year.
This is a significant increase from the £39,000 recorded last year. The sudden surge in the number of millennial millionaires has been fueled by entrepreneurial success and memes. Soccer players and social media influencers also earn hugely by leveraging their social media following. There are also many millionaires now employed in high-paying technology and finance sectors, such as profitable services such as private equity and investment banking.
Number of British millennial millionaires increases due to crypto entrepreneurship
Examples of entrepreneurs include Kristo Kaarmann, CEO of TransferWise, and Ben Francis, founder of Gymshark. This group of millennials created their businesses based on the success stories of other UK millennials. Speaking to City AM, Bowmore Wealth Group CEO Mark Incledon explained that millennials are in a phase of earning more than they have in years. He advised young millionaires to save for retirement “as best they can.” Incledon went on to explain that UK millennial millionaires should also invest in traditional assets other than cryptocurrencies:
“During the lockdown we have seen more and more millennials thinking about their financial future and looking to invest their money. Instead of pouring all of their wealth into risky assets like cryptocurrency or meme stocks, they need to follow simple, straight-forward steps when investing. This includes a diversified portfolio across different regions, sectors and asset classes.”
Unlike millennial millionaires, some boomers are now making less than they used to, while others are retiring. Low incomes have recently been reported more frequently than in the past. In 2021, 6,000 Boomers reported income of £1m, up from 7,000 the year before. At the same time, the number of Boomers who reported earning over £150,000 has fallen from 131,000 to 120,000. These numbers are the lowest in the last five years. A high percentage of Boomers have chosen to exit the labor market and retire earlier during the pandemic.
Boomers lack crypto knowledge
What’s more, in the fast-moving digital world, boomers hardly own any digital assets. Most of them don’t understand the concept of cryptocurrencies, unlike the millennials who have become millionaires through digital assets.
As of February 2022, £812m worth of investments were in Venture Capital Trusts (VCT). Bowmore believes that high-income earners with higher risk tolerance should consider investing in growth companies through VCTs. He believes savers should maximize the use of ISAs, which allow tax-free savings of up to £20,000 a year.