Generation X is poised to benefit significantly from the $84 trillion Great Wealth Transfer over the next decade, according to a new study. While millennials and Generation Z are anticipated to receive substantial inheritances as baby boomers pass down their wealth, Gen X stands to gain the most in the near term. The study by Wealth-X found that the average age of individuals in North America set to inherit fortunes from parents worth $5 million or more is 46.1 years. For those inheriting from parents worth $30 million or more, the average age is 47.6.
Currently aged between 44 and 59, Gen X has often been overlooked in discussions about young inheritors. Wealth management firms and private banks have largely focused on millennials, aged 28 to 43, as they prepare for the massive wealth transfer. However, the findings suggest that these firms should also prioritize Gen X as they will be the first to inherit from their wealthy parents. Alliant Credit Union data shows that more than half of millennials expect an inheritance of at least $350,000.
The Wealth-X report emphasizes the need for wealth management, luxury, and real estate firms to consider Generation X as a key demographic. The media frequently highlights millennial and Gen Z heirs, but Gen X will be the primary beneficiaries of their parents’ wealth in the near term. The report indicates that millennials and Gen Z are more likely to receive smaller sums as grandchildren.
Inheritances will be highly concentrated at the top, with 1.2 million individuals worth $5 million or more set to pass down over $31 trillion in wealth within the next decade. Of this, nearly 64% will come from the ultra-wealthy, those worth $30 million or more. This means that almost $20 trillion will be transferred from 155,000 of the wealthiest individuals.
Super-wealthy individuals, worth $100 million or more, will account for nearly half of the $31 trillion total, with billionaires passing down about $5 trillion. The inheritors from these wealthy families will have different values and priorities than previous generations, which wealth managers, luxury firms, and philanthropies need to adapt to. The next generation of investors is more influenced by technology, environmental concerns, social justice, and global perspectives.
The report highlights that new technologies, clean-energy transitions, and impact investing will be key focuses for many heirs, which may not align with their family’s existing business structures or legacy plans. Wealth managers must recognize and adapt to these shifting priorities to effectively serve the next generation of wealthy clients.
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