Boomer “Spend-Down” Approach Expands $124 Trillion Wealth Transfer Divide

An increasing generational rift is becoming apparent as younger Americans—especially those in Gen Z and Millennials—look forward to inheriting wealth from their baby boomer parents, while many boomers show little interest in passing down their assets. According to a 2024 Northwestern Mutual survey of 4,500 adults in the U.S., there are clear differences: 54% of Gen Z and 59% of Millennials consider inheritance essential for financial stability and a comfortable retirement. In contrast, just 22% of boomers intend to leave an inheritance, and only 11% see it as their main financial objective Gen Z expects to inherit money, assets—but boomer parents aren’t planning on leaving anything behind [ 1 ]. This so-called "inheritance gap" highlights changing perspectives on wealth transfer, with more boomers choosing to enjoy their resources rather than pass them on Gen Z wants an inheritance. Why most boomers … [ 2 ].

The findings reveal a contradiction: although boomers hold half of the nation’s wealth—much of it in property—less than 20% plan to bequeath it to their children. Financial advisors point to worries about outliving their savings, noting that 35% of boomers lack access to retirement accounts and half are unsure about their retirement expenses Gen Z expects to inherit money, assets—but boomer parents aren’t planning on leaving anything behind [ 1 ]. Many boomers are also opting to spend their money on experiences such as travel or charitable donations rather than leaving financial inheritances Gen Z wants an inheritance. Why most boomers … [ 2 ]. As one boomer shared with Fortune, "If you have money now, do good now—don’t wait until you’re dead" Gen Z expects to inherit money, assets—but boomer parents aren’t planning on leaving anything behind [ 1 ].

The anticipated Great Wealth Transfer, which could see $124 trillion move to younger generations over the coming decades, faces major obstacles. Increasing healthcare and eldercare costs are diverting funds away from potential heirs. The same Northwestern Mutual survey found that 46% of boomers are preparing for future medical expenses, meaning a significant portion of their wealth may go toward healthcare instead of inheritance Gen Z expects to inherit money, assets—but boomer parents aren’t planning on leaving anything behind [ 1 ]. While 60% of boomers have a will, only 20% specify financial assets for their children—most focus on funeral arrangements Gen Z expects to inherit money, assets—but boomer parents aren’t planning on leaving anything behind [ 1 ]. Financial experts warn that the lack of open conversations about inheritance among boomers adds to the uncertainty, with 56% not having a will at all Gen Z wants an inheritance. Why most boomers … [ 2 ].

Even though many young people do not expect to inherit much, they are already relying on their parents for support. Pew Research Center data shows that a third of Millennials in their early 30s receive financial help from their parents for everyday expenses and subscriptions. The BMO Real Financial Progress Index reports that 45% of Canadian parents plan to assist their adult children financially in the next year, with 23% helping with general expenses and 16% covering childcare. This "intergenerational safety net" is a response to economic challenges like high housing prices and student loans, as well as a shift toward shared financial responsibility within families.

The friction between generations is rooted in their different life circumstances. Boomers, who benefited from economic growth and affordable homes, often see their wealth as the result of personal effort. "Many older people are saying, ‘I’ve done my due,’" explained Melissa Cox, a certified financial planner Gen Z wants an inheritance. Why most boomers … [ 2 ]. On the other hand, younger Americans are dealing with stagnant incomes, rising rents, and student debt, which fuels frustration over what they see as unfair generational differences Gen Z wants an inheritance. Why most boomers … [ 2 ]. Financial professionals warn that disappointment over inheritance could create family tensions, though some boomers recognize the importance of honest discussions. As one advisor put it, "Most people I’ve met want to leave something. I’ve never met anyone who wants their last check to bounce" Gen Z wants an inheritance. Why most boomers … [ 2 ].

The future of the Great Wealth Transfer is still unclear. While 73% of Canadian parents intend to leave an inheritance, 19% expect to pass on debt, and 27% hope to hand down the family business. In the U.S., however, boomers are less likely to have formal plans, with 56% lacking a will Gen Z wants an inheritance. Why most boomers … [ 2 ]. This uncertainty leaves younger generations unsure about what to expect. As the $124 trillion transfer progresses, experts stress the importance of family communication, proper estate planning, and realistic expectations to reduce conflict and ensure that wealth is used as intended—whether now or in the years to come.