It’s been known as the greatest transfer of wealth in historical past: Child boomers, now aged 62-80 (born between 1946 and 1964), are estimated to carry no less than $93 trillion in property, and are sitting on extra money than Gen X and millennials mixed. Stated one other means, all the GDP of the US was about $31 trillion in 2025—Boomers’ have 3 times that.
However as they attain the tip of their lives, the massive query is the place will all that cash go?
A new report from Visa Business and Economic Insights out this month finds a big chunk of that’s unlikely to make it into the palms of future generations. And that solely $36 trillion, or slightly over a 3rd, of that Child boomer wealth will truly get handed all the way down to their Gen X and millennial heirs over the following 20 years. That’s equal to about $515,000 per inheriting family.
Why so little? That’s what’s left after subtracting over $4 trillion in debt (for mortgages and bank cards), all the cash the highest 1% will donate to charity and their charitable organizations, the large prices of retirement in the present day, plus taxes and costs.
Whereas boomers often is the wealthiest technology in historical past, many of those older owners are carrying mortgage debt in retirement—with 41% of these 65 to 79 years outdated; and 31% for these 80 and older—nonetheless owing cash.
In addition they produce other debt within the type of: bank cards and auto loans, borrowing towards brokerage accounts and different funding portfolios, plus private and enterprise loans. Taken collectively, this provides as much as quite a bit much less wealth to move on.
When all is claimed and executed, Visa estimates of that $36 trillion, $28 trillion will doubtless go into financial savings and investments (together with property), whereas future generations will solely find yourself spending the remainder of their $8 trillion of their inheritance.
That’s to not say $8 trillion is chump change. It’s nonetheless quite a bit. And in keeping with Visa, that cash will doubtless be spent on a couple of key issues: Housing (shopping for a house or down-payment), cars (autos and associated bills akin to insurance coverage, upkeep, repairs and gasoline), journey and retail items.
Millennials, specifically, who prioritize spending on journey, eating out and leisure, will doubtless spend their inherited wealth on these issues, the report concludes.
