Millennials and Gen Z Expect to Inherit $335,000, Planning to Save or Invest

A new survey by Choice Mutual finds that two-thirds of Americans aged 18-43 expect to receive an inheritance from their parents, averaging $334,850. Most plan to save or invest the money, with 73% opting for savings and 57% for investments. However, the anticipation of inheritance is also causing financial stress, with 60% feeling anxious about future support responsibilities and 53% already supporting their parents financially. Experts project a $100 trillion transfer of wealth from baby boomers to younger generations over the next 25 years.

A new survey by Choice Mutual reveals that two-thirds of Americans aged 18-43 expect to receive an inheritance from their parents, with an average expected inheritance of $334,850 [1]. The survey highlights the growing importance of family wealth in shaping the financial future of younger generations.

The majority of those expecting an inheritance plan to save or invest the money. Seventy-three percent intend to put the money into savings, while 57% plan to invest it [1]. Others plan to use the inheritance for housing costs, debt repayment, or saving for their own children. More than seven in 10 expect to inherit cash, and 69% believe real estate will be part of the package [1].

However, the anticipation of inheritance is also causing financial stress. Sixty percent feel anxious about future support responsibilities, and 53% are already supporting their parents financially. One-third of those surveyed admitted they resent their parents for not being in a stronger financial position [1].

Experts project that nearly $100 trillion will change hands from baby boomers to younger generations over the next 25 years [1]. This substantial wealth transfer could significantly impact the financial landscape for younger generations and present opportunities for financial institutions like Charles Schwab [2].

Charles Schwab stands to benefit from the Great Wealth Transfer, with younger generations inheriting vast sums of money. While Millennials and Gen Z have fallen behind older generations in savings and investments, they could become growth engines for the brokerage industry [2]. However, the company will need to address the gap in usage compared to competitors like Robinhood [2].

The survey underscores the financial planning needs of younger generations, highlighting the importance of inheritance in their financial future. As the wealth transfer progresses, financial advisors and institutions will play a crucial role in guiding younger generations through the complexities of managing their inherited wealth.

References:
[1] https://finance.yahoo.com/news/young-americans-expect-inherit-335-160132992.html
[2] https://seekingalpha.com/article/4817430-charles-schwab-can-cash-in-on-the-great-wealth-transfer