A generational shift is redefining how wealth is passed down in America, according to a recent study by Charles Schwab.
High-net-worth Millennials and Gen Xers are leading the way in transferring their wealth while still alive, while Baby Boomers remain more reserved, prioritizing personal enjoyment of their money.
Millennials and Gen X Lead Wealth Transfer, Boomers Focus on Personal Spending
The study revealed that only 21% of wealthy Boomers said they want the next generation to enjoy their wealth during their lifetimes.
In contrast, 53% of wealthy Millennials and 44% of Gen Xers expressed a desire to share their wealth with loved ones while they are still around to witness its impact.
This trend marks a significant change in legacy planning. Younger generations are reshaping how wealth is distributed, with 97% of Millennials and Gen X respondents planning to pass on at least part of their assets during their lifetimes.
Meanwhile, only 56% of Boomers intend to do the same, FastCompany said.
Despite their openness to giving, younger wealthy Americans are more likely to impose conditions on how their money is used.
Nearly all Gen X and Millennial respondents reported including stipulations for their heirs, compared to just 34% of Boomers. These conditions reflect a growing emphasis on financial responsibility and alignment with shared family values.
The numbers at stake are substantial. On average, Millennials expect to pass along $4.7 million, the highest among the surveyed groups, while Gen X plans to transfer $4.5 million. In comparison, Boomers anticipate passing down $3.1 million.
Collectively, these wealth transfers will contribute to the "Great Wealth Transfer," an estimated $84 trillion set to move from older generations to Gen X, Millennials, and Gen Z over the coming decades.
Millennials and Gen X Redefine Wealth as Stewardship, Sparking Cultural Change
However, Boomers are less inclined to prioritize wealth preservation for future generations. The survey found that 45% of Boomers plan to spend their wealth on themselves, compared to just 15% of Millennials and 11% of Gen Xers.
According to The Hill, experts believe that these trends reflect deeper societal changes. Susan Hirshman, a wealth management director at Charles Schwab, noted that younger generations are increasingly viewing themselves as stewards of wealth rather than mere beneficiaries.
This shift encourages conversations about values and responsibilities, fostering a more intentional approach to legacy planning.
As Millennials and Gen X redefine wealth-sharing norms, their choices may inspire a broader cultural shift in how Americans think about money, family, and long-term impact.
Meanwhile, Boomers continue to enjoy their hard-earned success, demonstrating that the meaning of wealth is as diverse as the generations who hold it.
