Visa Finds $36 Trillion Boomer Transfer Will Enrich Already Wealthy Heirs
Updated
Updated · The Washington Post · Jul 8
Visa Finds $36 Trillion Boomer Transfer Will Enrich Already Wealthy Heirs
3 articles · Updated · The Washington Post · Jul 8
Summary
$36 trillion in baby boomer wealth is projected to pass to Gen X and millennial heirs over 20 years, with Visa finding most of it will land with recipients who are already affluent.
Nearly three-quarters of inheriting households will already sit in the top wealth tier when they receive the money, largely because richer boomers have more to pass on while lower-wealth households spend more on housing and health care.
Visa estimates boomers hold $93 trillion in assets, but only about $8 trillion of inherited wealth will be spent into the economy; much of the rest is expected to be saved or invested in stocks and real estate.
That pattern could widen existing wealth gaps even as the spending portion nudges annual consumer spending growth to 2.1% from 2.0%, with heirs directing money toward housing, cars, travel and retail.
The 'great wealth transfer' is not $93 trillion. Where will most of this boomer wealth actually go?
Financial advisors could lose half of inherited assets. What must they do to survive this generational shift?
The Great $100 Trillion Wealth Transfer: Economic, Social, and Policy Impacts of a Global Generational Shift
Overview
A massive intergenerational wealth transfer is underway, with Baby Boomers increasingly choosing to give financial support to their children and grandchildren before passing away. This shift from traditional inheritance patterns means that more wealth is being used for immediate needs like home purchases and family experiences, rather than waiting for inheritance. As a result, the timing and impact of wealth entering younger generations is changing, leading to more immediate economic activity. However, not all assets will reach intended heirs, and this evolving transfer is creating significant economic and social effects, including deepening wealth disparities and influencing market dynamics.