What is it?
The Great Wealth Transfer refers to the remarkable transfer of funds from older generations to beneficiaries (heirs or nonprofits) in the coming decades. The latest estimate predicts about $68 trillion will change hands from 2017 to 2041.
Baby boomers, the most affluent generation today, will pass on the lion’s share of the wealth: $48 trillion. Baby boomers hold 70% of U.S. disposable income today.
The two greatest beneficiaries of the transfer will be:
- Generation X: This generation will receive 57% of transferred assets. They’ll receive $32 trillion from baby boomers alone. From transfers and other earnings, Gen Xers are set to double their share of household wealth by 2030.
- Women: This group will gain significant wealth from spouses and older parents. Due to longer lifespans and older partners,1 one report estimates that female baby boomer spouses will receive up to $11 trillion in investable assets by 2030.