The $84 trillion Great Wealth Transfer expected to occur in the next 10 years will have a significant impact on different generations. While millennials and Generation Z are often highlighted as the primary beneficiaries of this transfer as baby boomers pass down their fortunes, a new study suggests that Generation X may actually receive the largest windfalls in the near term.

Generation X: The Overlooked Beneficiary

According to Wealth-X, individuals in North America set to inherit fortunes from parents worth $5 million or more have an average age of 46.1 years old. Similarly, children expected to receive substantial inheritances from parents worth $30 million or more have an average age of 47.6. This places members of Generation X, defined as those between the ages of 44 and 59 today, at the forefront of the upcoming wealth transfer.

Despite the focus on younger generations such as millennials and Gen Z in discussions about inheritances, it is crucial for wealth management firms and private banks to recognize the significant wealth potential of Generation X. While more than half of millennials expect inheritances of at least $350,000, the report indicates that Generation X will be the first to inherit from their wealthy parents.

The study predicts that in the next decade, 1.2 million individuals worth $5 million or more will pass down over $31 trillion in wealth. The majority of this wealth transfer, 64%, will come from the ultra-wealthy individuals worth $30 million or more. This means that approximately $20 trillion will be passed down by 155,000 people in this upper echelon of wealth.

Challenges and Adaptations

Wealth managers, luxury companies, and philanthropic organizations will need to adapt to the shifting values and priorities of inheritors from different generations. As the transfer of wealth occurs, it is essential for these entities to understand the unique needs and expectations of Generation X, millennials, and Generation Z in order to provide tailored services and offerings.

The impending Great Wealth Transfer presents a unique opportunity for Generation X to receive substantial inheritances from their parents. As wealth management firms and other organizations prepare for this transfer of wealth, it is imperative to acknowledge the importance of including Generation X in their strategies and offerings. Ultimately, understanding the diverse needs and expectations of inheritors from different generations will be key to navigating the evolving landscape of wealth management.


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