The Great Wealth Transfer is coming: Here’s how much younger Americans expect to inherit from their parents
Over the course of the next two decades, trillions of dollars are expected to trickle down from the silent generation and baby boomers in a phenomenon that’s been termed the “great wealth transfer.” According to a new study, half of Americans have an inheritance or expect to receive one, and parents hope to leave heirs with more than double their expectations. That’s according to the third annual “Everyday Wealth in America” report from Edelman Financial Engines, which polled more than 3,000 Americans on their attitudes toward money amidst an ongoing period of inflation and, critically, during an election year. How much inheritance are people expecting? The report dedicates a section to succession expectations, diving into just how much younger generations stand to gain from the upcoming great wealth transfer. Of those Americans who expected to receive an inheritance in the future, 51% projected it to be less than $100,000. However, 33% reported anticipating between $100,000 and $499,999. Among those who had already received their inheritances, a majority of two-thirds felt that the amount was equal to or greater than what they’d expected. Interestingly, the report also found that parents who plan to leave inheritances have increasingly lofty ambitions. Parents who reported wanting to leave an inheritance reported a median of $200,000 as their goal contribution. Is it time to move out? Aside from the question of succession, the report also highlights emerging generational trends. The threshold for financial independence is rising, with 42% of parents providing monetary support to their adult children, and only 32% agreeing to the idea that children should be “out of the house and independent” by 21. That trend likely dovetails with the current state of inflation and rising cost of living: According to the study, 58% of Americans believe that a yearly salary of $100,000 or more is necessary to live without worrying about everyday expenses, while 25% put the ideal figure at $200,000 or more. Election anxiety takes center stage Per the report, financial issues remain the leading source of stress for Americans—but political concerns are also becoming more pertinent. The current political climate worried 86% of respondents (up from 80% last year). And 10% said they’ve already made financial decisions in anticipation of the presidential election. Homeownership was also a relevant concern, with 72% reporting frustration over current mortgage interest rates, and a quarter reporting that they’re unable to live where they’d like to due to financial constraints. One bleak section of the study asked Americans to choose between better health or better wealth. While 61% said they’d rather never worry about health than never worry about money, a dystopian 51% majority voted for adding $1 million to their retirement accounts rather than five healthy years to their life expectancy.
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Over the course of the next two decades, trillions of dollars are expected to trickle down from the silent generation and baby boomers in a phenomenon that’s been termed the “great wealth transfer.”
According to a new study, half of Americans have an inheritance or expect to receive one, and parents hope to leave heirs with more than double their expectations.
That’s according to the third annual “Everyday Wealth in America” report from Edelman Financial Engines, which polled more than 3,000 Americans on their attitudes toward money amidst an ongoing period of inflation and, critically, during an election year.
How much inheritance are people expecting?
The report dedicates a section to succession expectations, diving into just how much younger generations stand to gain from the upcoming great wealth transfer.
Of those Americans who expected to receive an inheritance in the future, 51% projected it to be less than $100,000. However, 33% reported anticipating between $100,000 and $499,999. Among those who had already received their inheritances, a majority of two-thirds felt that the amount was equal to or greater than what they’d expected.
Interestingly, the report also found that parents who plan to leave inheritances have increasingly lofty ambitions. Parents who reported wanting to leave an inheritance reported a median of $200,000 as their goal contribution.
Is it time to move out?
Aside from the question of succession, the report also highlights emerging generational trends. The threshold for financial independence is rising, with 42% of parents providing monetary support to their adult children, and only 32% agreeing to the idea that children should be “out of the house and independent” by 21.
That trend likely dovetails with the current state of inflation and rising cost of living: According to the study, 58% of Americans believe that a yearly salary of $100,000 or more is necessary to live without worrying about everyday expenses, while 25% put the ideal figure at $200,000 or more.
Election anxiety takes center stage
Per the report, financial issues remain the leading source of stress for Americans—but political concerns are also becoming more pertinent.
The current political climate worried 86% of respondents (up from 80% last year). And 10% said they’ve already made financial decisions in anticipation of the presidential election. Homeownership was also a relevant concern, with 72% reporting frustration over current mortgage interest rates, and a quarter reporting that they’re unable to live where they’d like to due to financial constraints.
One bleak section of the study asked Americans to choose between better health or better wealth. While 61% said they’d rather never worry about health than never worry about money, a dystopian 51% majority voted for adding $1 million to their retirement accounts rather than five healthy years to their life expectancy.
