Transfer of wealth could fuel future industry investments
It’s been called the greatest wealth transfer in history: nearly $124 trillion in assets is set to change hands through 2048, according to recent research identifying the wealth of the Baby Boomer generation.
The recipients, primarily members of Generation X (those born between 1965 and 1980), Millennials (1981-1996) and Gen Z (born after 1997), are expected to inherit some $106 trillion of that amount, with the rest going to charity. Gen Xers are estimated to inherit $39 trillion, while Millennials could garner $46 trillion and Gen Zers could rake in $15 trillion.
The “generational wealth transfer” has become a media fascination, both for its eye-popping size and because it might help younger generations as they face doubts about their financial security. That shift is already in the works and will continue for a couple of decades. That includes both gifts during their lifetimes and inheritances afterward.
But one wildcard in estimating this gargantuan wealth transfer is the overwhelming cost of health care for the Boomers, which means most people in those later generations may not inherit as much, even if their elders seem well-off today.