Gen Z Watch: Only 22% of boomers to leave an inheritance

A study found that 54% of Generation Z sees inheritance as crucial for their financial well-being, while only 11% of baby boomers consider leaving something for their children as their top financial goal. This has led to discussions about an “inheritance gap” and generational stereotypes. Data shows that the typical senior aged 65-74 with a retirement account has about $200,000 saved, but concerns exist about leaving nothing for their children after their passing, as a significant portion of the wealth passed down from boomers may end up going to hospitals and long-term care facilities as they face the challenges of aging.

According to a new study from Northwestern Mutual, there is a significant disparity between the number of young Americans expecting to receive an inheritance and the number of older Americans planning to leave one. The study reveals that only 22% of boomers anticipate leaving an inheritance, while 38% of Gen-Zers expect to inherit money or assets. This is quite a contrast to the commonly anticipated “Great Wealth Transfer”, which is a generational exchange of riches that could pass $90 trillion from boomers to their heirs over the next 20 years.