The Great Wealth Transfer is coming: Here’s how young Americans expect to receive it from their parents

Over the next two decades, billions of dollars are expected to trickle down from the silent generation and baby boomers in a phenomenon called “mass wealth transfer.”

According to a new study, half of Americans have or expect to receive an inheritance, and parents hope to leave heirs with double the expected fortune.

That’s according to the third annual “Everyday Wealth in America” ​​report from Edelman Financial Engines, which surveyed more than 3,000 Americans about their attitudes toward money during a period of persistent inflation and, crucially, during an election year.

How much inheritance do people expect?

The report provides a step-by-step look at expectations, delving into how much the new generation will receive from the next big wealth transfer.

Of those Americans who expected to receive an inheritance in the future, 51% indicated that it would be less than $100,000. However, 33% reported expecting between $100,000 and $499,999. Of those who have already received their inheritance, a majority of three out of three felt that the amount was equal to or greater than they expected.

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Interestingly, the report also found that parents who plan to leave estates have increasingly high aspirations. Parents who reported wanting to leave a bequest reported a median of $200,000 as their intended donation.

Is it time to go out?

Apart from the question of succession, the report also highlights emerging trends in manufacturing. The threshold for financial independence is increasing, as 42% of parents provide financial support to their older children, and only 32% agree with the idea that children should be “out of the house and independent” by the age of 21.

This trend probably coincides with the current situation of inflation and the rising cost of living: According to the survey, 58% of Americans believe that an annual income of $ 100,000 or more is necessary to live without worrying about daily expenses, while 25% put it right. a total of $200,000 or more.

Election anxiety takes center stage

According to the report, financial issues remain the top source of stress for Americans—but political concerns are also becoming more influential.

The current political climate worried 86% of respondents (up from 80% last year). And 10% said they had already made financial decisions while waiting for the presidential election. Home ownership is also a relevant concern, with 72% reporting frustration with mortgage interest rates, and a quarter reporting they are unable to live where they would like to live due to financial constraints.

Another bleak part of the survey asked Americans to choose between better health or better wealth. While 61% say they’d rather never worry about life than never worry about money, a majority of dystopians 51% voted to add $1 million to their retirement accounts over a healthy five years in their lifetime.