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🤓🚀 Thinking different
June 30, 2024

Gen X Poised to Gain the Most from $84 Trillion Wealth Transfer

Gen X will benefit the most from the $84 trillion wealth transfer expected in the next decade, with the average heir age at 46.
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Generation X is set to emerge as the primary beneficiary of the staggering $84 trillion wealth transfer anticipated over the next decade, according to a recent study. While much of the focus has been on millennials and Generation Z as the future recipients of baby boomer wealth, it is Gen X that stands to receive the largest windfalls in the near term.

Wealth-X, a research firm specializing in wealth intelligence, reports that the average age of individuals in North America who are expected to inherit fortunes from parents worth $5 million or more is 46.1 years old. This places the bulk of the immediate wealth transfer squarely in the hands of Gen X, defined in the study as those currently aged 44 to 59.

The study further highlights that the average age of heirs set to inherit from parents with a net worth of $30 million or more is 47.6 years old. These findings underscore the significant financial potential for Generation X, a group that has often been overlooked in discussions about young inheritors.

Shifting Focus in Wealth Management

Wealth management firms and private banks have predominantly targeted younger clients in their 20s and 30s, anticipating the eventual transfer of trillions from baby boomer parents. However, the Wealth-X report suggests that these firms should also start paying attention to Generation X, who are poised to receive substantial inheritances in the near term.

This shift in focus could have broad implications for various industries. Luxury companies, real estate firms, and other sectors that cater to high-net-worth individuals may find it beneficial to tailor their strategies to engage Gen X clients. This demographic, with their imminent influx of wealth, represents a lucrative market that has yet to be fully tapped.

Overlooked No More

The potential for wealth accumulation within Generation X is substantial. Despite this, much of the narrative around inheritance has centered on younger generations. According to Alliant Credit Union, more than half of millennials are expecting an inheritance of at least $350,000. While these figures are significant, they pale in comparison to the larger inheritances expected to be received by Gen X in the near term.

As the $84 trillion wealth transfer unfolds, the financial landscape is likely to see a notable shift. Generation X, often sandwiched between the larger baby boomer and millennial cohorts, is set to gain a significant share of this wealth. This newfound financial power could reshape markets and influence economic trends in the coming years.

For more detailed information, you can read the full article on CNBC.

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