The Great Wealth Transfer is underway, marking the largest movement of assets in history as Baby Boomers pass down an estimated $84 trillion to Gen X and Millennials over the next two decades. This unprecedented shift is expected to reshape the financial landscape, with the majority of wealth concentrated among the wealthiest families, meaning its impact will be uneven across generations and demographic groups. While this transfer offers the potential for some to build generational wealth, most Gen Xers cannot rely on inheritance alone for financial security, as high living costs, longer retirements, and healthcare expenses may erode the assets before they are passed down.
The process is gradual, with the oldest Boomers now in their late seventies and the youngest just entering their sixties, so inheritances may not arrive in time to meaningfully affect Gen X’s retirement plans. Furthermore, the bulk of this wealth will go to the top 10 percent of households, perpetuating existing wealth inequality and leaving many with only modest inheritances, if any. For those who do inherit, converting assets into sustainable income streams and managing tax implications will be crucial.
Given these realities, Gen X should focus on proactive financial planning, maximizing retirement contributions, reducing debt, and preparing for unexpected expenses. Open communication with parents about inheritance expectations and estate plans is essential to avoid surprises and ensure a smooth transfer of assets. Even for those expecting to receive a share of this historic transfer, treating any inheritance as a potential bonus—rather than a guarantee—will encourage disciplined saving and investing. By building a strong financial foundation and seeking professional advice, Gen X can better navigate the uncertainties of the Great Wealth Transfer and work toward a secure, self-determined retirement.
