Baby Boomers are holding onto their wealth longer than expected, rather than passing it down as inheritance to their children. Recent reports show that the “Great Wealth Transfer,” which was predicted to see boomers passing down billions of dollars to their Millennial and Gen Z children, is taking a different turn.
Every day, around 12,000 Boomers are turning 65, and many experts assumed they would start to retire, downsize, and distribute their wealth. But a recent survey by Charles Schwab found that nearly half of Boomers prefer to “enjoy my wealth while I’m still alive.” This shift in thinking is reshaping how we think about inheritance.
Warren Buffett, the famous billionaire, has echoed a similar sentiment. He has expressed that he will not pass all of his wealth to his children. Instead, he believes his grown kids, who are now 66, 70, and 71, should give the money to charitable causes since they already have enough.
Born between 1946 and 1964, Boomers are well-known for benefiting from low housing prices and strong labor conditions, allowing them to accumulate considerable wealth. By contrast, only 11% of Gen X-ers and 15% of Millennials say they would rather keep their money than pass it down during their lifetime. These younger generations are not only more likely to share their wealth but are more than twice as likely to do so while they are still alive.
“According to our survey, younger Americans could be on the verge of changing legacy planning and how wealth is passed down to the next generation,” said Andrew D’Anna from Charles Schwab about the findings.
Currently, Gen X, aged between 44 and 59, is set to be the primary group benefiting from this transfer of wealth. According to a report by Wealth-X, those from ultra-wealthy families who have fortunes worth $5 million or more can expect to receive their inheritance by the time they’re 46.
With Boomers currently holding around $83.5 trillion in wealth, the largest transfer of wealth in history is expected to happen over the next two decades. $17 trillion of that wealth is tied up in home equity, as Boomers have seen the value of their homes grow substantially over the years. Home prices alone have increased by about 500% since 1983, when Boomers were first entering the housing market.
Most of the wealth transfer will take place among the wealthiest families in the US and globally. According to Cerulli Associates and the Federal Reserve in 2024, 68% of wealth being transferred between 2020 and 2045 will come from households with at least $1 million in investable assets.
Despite this, many Boomers have stated that they plan to distribute about 40% of their assets while still alive, with the rest being passed down after their death, according to Edward Jones research. Rising healthcare costs and increased lifespans are among the key reasons for this delay in wealth transfer.
However, three out of four Boomers still plan to leave the proceeds from selling their homes or the homes themselves to their children, according to a 2024 Freddie Mac survey.
Last modified: February 27, 2025
