Upper Class Baby Boomers Are Less Likely To Make This Money Move

Baby boomers hold the majority of the nation's wealth, per the Federal Reserve System, with more than $85 trillion at their disposal as of Q2 2025. Even more, according to Cerulli & Associates, around $100 trillion dollars will transfer from older generations like baby boomers to younger generations through 2048 in what's known as "The Great Wealth Transfer." However, upper-class baby boomers are less likely to follow this trend.

A mid-2024 Charles Schwab survey found that only 34% of high-wealth baby boomers reported wanting to preserve their wealth to leave as an inheritance for the next generation. This is in contrast to the 45% of wealthy Gen Xers who reported wanting to preserve their wealth for the next generation. Wealthy baby boomers also reported that they expected to leave less of their fortune to their heirs than other generations — planning to transfer, on average, $3.1 million mostly in investments. Meanwhile, Gen Xers and millennials both plan on leaving closer to $5 million in wealth to the next generation, with most of their legacy being left in the form of real estate — an asset that isn't necessarily considered one of the best assets to inherit.

So if upper-class baby boomers aren't planning to leave as much inheritance to their heirs, is there really a "Great Wealth Transfer" on the horizon? The surprising retirement rule that encourages seniors to spend money, or the "die with zero" principle, is one that many retirees are increasingly embracing. This idea is centered on the idea that seniors should spend down their savings at a rate that will leave virtually nothing when they die. Instead of hoarding their money, they spend it doing what they enjoy, and on things they can feel good about while they're still alive.

With that in mind, many financial experts agree that the transfer of wealth is still happening, but not in the ways many people might have originally imagined. For instance, many baby boomers are spending their money in ways that are driving the economy — whether that means splurging on an extended trip or completing overdue home repairs. Ultimately their money is flowing back into the economy, and thereby helping it grow, even if it's not being transferred directly to their children. So, while the great wealth transfer may not come in the form of a large inheritance, it is still occurring in a more slow-motion pouring-in of money that could serve to stimulate larger economic factors.

It's worth noting that younger wealthy Americans are more apt to want to enjoy their money with their family while they're still alive — as opposed to baby boomers who largely prefer to spend their money on themselves. In the 2024 Charles Schwab survey, 53% of millennials with a high net worth reported wanting to share their money with the next generation before they die. However, only 21% of wealthy baby boomers reported the same. Meanwhile, 97% of millennials and Gen Xers reported wanting want to distribute some of their wealth while they're still alive, compared to just 56% of baby boomers who feel the same. This mindset shift surrounding inheritance could lead to a big change in the way wealth is transferred in the future.

With that in mind, those who plan to leave money to the next generation are increasingly putting stipulations on how that money can be accessed. Whereas just 34% of wealthy baby boomers wanting to leave an inheritance plan to attach specific stipulations, a whopping 94% of wealthy Gen Xers and 97% of millennials report planning to have strings attached to any inheritance they leave behind. These stipulations commonly center on the age at which the inheritance money can be distributed or even how the money can be used. This shift could have long-term effects on the saving and spending habits of future generations.