Boomer "Spend-Down" Strategy Widens $124T Inheritance Gap

A growing generational divide is emerging as younger Americans, particularly Gen Z and Millennials, anticipate inheriting wealth from their aging boomer parents, while the latter show little inclination to pass on assets. A 2024 Northwestern Mutual survey of 4,500 U.S. adults reveals stark contrasts: 54% of Gen Z and 59% of Millennials view inheritance as critical to achieving financial security and retirement comfort. However, only 22% of boomers plan to leave an inheritance, with just 11% prioritizing it as their top financial goal Gen Z expects to inherit money, assets—but boomer parents aren’t planning on leaving anything behind^[1]. This "inheritance gap" underscores a shift in attitudes toward wealth transfer, with boomers increasingly favoring self-enjoyment of their assets over intergenerational handoffs Gen Z wants an inheritance. Why most boomers …^[2].

The data highlights a paradox: while boomers control 50% of U.S. wealth—much of it tied to real estate—fewer than one in five intend to leave it to their heirs. Financial planners attribute this to concerns about outliving savings, with 35% of boomers lacking retirement account access and 50% unsure of their retirement cost estimates Gen Z expects to inherit money, assets—but boomer parents aren’t planning on leaving anything behind^[1]. Additionally, many boomers adopt a "spend-down" strategy, prioritizing experiences like travel and charitable giving over leaving monetary legacies Gen Z wants an inheritance. Why most boomers …^[2]. As one boomer told Fortune, "If you have money now, do good now—don’t wait until you’re dead" Gen Z expects to inherit money, assets—but boomer parents aren’t planning on leaving anything behind^[1].

The Great Wealth Transfer, projected to distribute $124 trillion to younger generations over decades, faces significant hurdles. Rising healthcare costs and eldercare expenses are siphoning assets away from heirs. The same Northwestern Mutual study found 46% of boomers plan to address future healthcare costs, suggesting a portion of wealth will fund medical care rather than inheritances Gen Z expects to inherit money, assets—but boomer parents aren’t planning on leaving anything behind^[1]. Meanwhile, 60% of boomers have a will, but only 20% include financial assets for their children—many focus on funeral instructions instead Gen Z expects to inherit money, assets—but boomer parents aren’t planning on leaving anything behind^[1]. Financial advisors warn that boomers’ reluctance to discuss inheritance plans exacerbates uncertainty, with 56% of boomers lacking a will Gen Z wants an inheritance. Why most boomers …^[2].

Despite low expectations of inheritance, younger generations are already drawing on parental resources. A Pew Research Center analysis shows 33% of Millennials in their early 30s receive financial support from parents for daily expenses and subscriptions. The BMO Real Financial Progress Index adds that 45% of Canadian parents plan to provide financial support to their adult children within the next year, including 23% for general expenses and 16% for childcare costs . This "intergenerational safety net" reflects both economic pressures—such as high housing costs and student debt—and a cultural shift toward shared financial responsibility .

The tension between generations stems from divergent life experiences. Boomers, who navigated economic growth and affordable housing, often view wealth accumulation as a personal achievement. "Many older people are saying, ‘I’ve done my due,’" said Melissa Cox, a certified financial planner Gen Z wants an inheritance. Why most boomers …^[2]. Conversely, younger Americans face stagnant wages, soaring rents, and student debt, fostering resentment over perceived generational inequities Gen Z wants an inheritance. Why most boomers …^[2]. Financial experts caution that unmet inheritance expectations could strain family relationships, though some boomers acknowledge the need for open dialogue. As one advisor noted, "Most people I’ve met want to leave something. I’ve never met anyone who wants their last check to bounce" Gen Z wants an inheritance. Why most boomers …^[2].

The Great Wealth Transfer’s trajectory remains uncertain. While 73% of Canadian parents plan to leave an inheritance, 19% intend to pass down debt, and 27% desire to transfer the family business . U.S. boomers, however, are less likely to formalize plans, with 56% lacking wills Gen Z wants an inheritance. Why most boomers …^[2]. This ambiguity leaves younger generations navigating inheritance expectations in a vacuum. As the $124 trillion transfer unfolds, experts emphasize the need for intergenerational communication, estate planning, and realistic financial expectations to mitigate conflict and ensure wealth serves its intended purpose—whether in the present or the future.