Experts say baby boomers will give more than $50 trillion to their heirs. But for many, health care costs will claim the bulk of that wealth.
The story goes that baby boomers are going to give tens of trillions of dollars to their heirs over the next few decades.
The “generational wealth transfer” has become a media fascination, both for its eye-popping size and because it might help younger generations as they face doubts about their financial security.
That shift is already in the works, and will continue for a couple of decades. According to wealth management firm Cerulli Associates, some $53 trillion will be passed down from boomers to their Gen X, millennial and Gen Z heirs, as well as to charities. That includes both gifts during their lifetimes and inheritances afterward.
But the overwhelming cost of health care for older people means most people in those later generations won’t inherit much, even if their elders seem well-off today.
Gen X as well, and never expected an inheritance. That just seems so wrong to be looking forward to a loved one passing. When my Mom brought it up, my brothers and I each said individually that her savings are for her, not to leave us.
My teens may be too young to think in those terms but their best bet is for me to kick off now while they’re in college and I have huge life insurance to cover that. I’ve never talked in terms of leaving an inheritance and am certainly more worried about how to afford living out my retired years
Yep. Same here. That said, both of my parents are already deceased, and I don’t have anything to show for it, which is fine, since I never expected anything in the first place.
I’m going to try to do better for my daughter.