Boomer wealth transfer will mostly benefit the already rich, report finds
Summary
A new report from Visa shows that the wealth passed down from baby boomers to their heirs will mostly go to already wealthy younger Americans. The total amount expected to be inherited is about $36 trillion after debts, taxes, and spending, much lower than previous high estimates.Key Facts
- Baby boomers hold about $93 trillion in assets.
- After subtracting debts, taxes, retirement costs, and charitable giving, about $36 trillion is expected to be inherited.
- The top 1% of wealthiest households were excluded from the study because their habits are different.
- On average, heirs will receive about $515,000.
- Only $8 trillion of the inheritance will likely be spent while most of it will be saved or invested.
- This inheritance will increase annual consumer spending growth by about 0.1 percentage points over the next 20 years.
- Wealthy heirs are expected to spend money mainly on home improvements, travel, and transportation-related expenses.
- Businesses like airlines, cruise lines, and home improvement stores will benefit from this spending.
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