MoneyWise
By Maurie Backman
Updated February 7th, 2025
Millions of US boomers are refusing to give their $84 trillion in real estate, wealth away to their adult kids — here’s why and what it means for the US economy
In the course of the next 20 years, an astounding $84 trillion is expected to change hands as older Americans pass assets on to younger generations. It’s been dubbed the Great Wealth Transfer, and a lot of younger people are no doubt hoping to take part in it.
But a recent survey finds that younger Americans may not be in line for the large inheritances they’re expecting.
A good 45% of wealthy baby boomers (defined as those with more than $1 million in investable assets) want to keep their money to spend in their lifetime, compared to just 15% of wealthy millennials and 11% of wealthy Gen-Xers. And that could have broad economic impacts.
Boomers’ stance could have broad impacts
It’s fair to say that a good number of baby boomers will end up passing on wealth to younger generations. But if that number shrinks as boomers reassess their priorities and costs, it could have a far-reaching impact on the financial stability of millennials and Gen-Zers.
Northwestern Mutual found that 32% of millennials and 38% of Gen-Zers expect to receive an inheritance. And 59% of millennials and 54% of Gen-Zers say that inheritance is either critical or highly critical to their financial security.
Given a recent rise in housing prices, it’s possible that a large percentage of younger Americans won’t be able to afford to buy a home without an inheritance to use as a down payment. That could result in a broad widening of the wealth gap, since homeownership has long been a driver of net worth and financial stability.
A good number of millennials and Gen-Zers alike continue to be saddled with student loan debt, making it harder to save for retirement or to buy a home. These generations may be in for a rude awakening if they’re depending on inheritances, that may not be coming, to get to a better place financially.
That’s why it’s so important for families to have open conversations about the transfer of wealth. But, a 2024 Edward Jones survey found that 35% of Americans do not plan to discuss the transfer of wealth with their families.
