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Baby Boomers will transfer about $84.4 trillion in wealth when the generation dies.
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One in six Americans are age 65 or older.
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Millennials will be the recipients of one of the largest transfers of wealth in history.
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The younger generation has struggled to gain a foothold in the current economy, making the transfer of wealth even more impactful.
(NewsReady.com) – The United States has a massive population of people who reaching their senior years. More than one in six Americans are age 65 or older, according to the Administration on Aging. Since 2010, the number of older citizens has increased by 38%. In 2020, there were 55.7 million people in the US over 65.
Of course, as people age, they begin to die. That’s what baby boomers are experiencing now. As they begin to die, a report indicates there will be a massive transfer of wealth.
Transfer of Wealth
The market research firm Cerulli Associates released a report last year about the transfer of wealth that will take place over the next couple of decades as baby boomers pass away, and it’s pretty shocking. The country’s older population has spent their lives working. Born after World War II, the aging generation has accumulated trillions of dollars worth of wealth collectively.
The Cerulli report projected that through 2045, baby boomers will transfer around $84.4 trillion. Of that money, about $11.9 trillion will go to various charities, creating a boom for those organizations. After that, they will give their heirs roughly $72.6 trillion in assets. Meanwhile, the generation that came before them, the Silent Generation (born 1928 – 1945), will transfer $15.8 trillion over the next decade.
Morley Winograd, an expert on millennials, told Newsweek the transfer of wealth will “represent one of the greatest” in modern history.
Millennials Struggling
The younger generation often discusses what a hard time they have had economically. Unlike baby boomers, their generation does not have the same kind of job security. In fact, those who were born in the late 80s literally entered the workforce during or right before the Great Recession. They were struggling right from the beginning.
After the recession was over, they were able to gain some footing, then BAM! A once-in-a-century health crisis struck the world. Once again, millennials were riding the struggle bus. They are also grappling with a crushing amount of student loan debt and a real estate market that has priced many of them out.
As a result, millennials have an average net worth of $100,000. That’s about 12 times less than the $1.2 million average net worth of baby boomers. When the wealth transfers, millennials are going to have another problem: figuring out how to hang on to it.
Copyright 2023, NewsReady.com
