DESPITE HOLDING MOST U.S. WEALTH, MANY BOOMERS PRIORITIZE RETIREMENT OVER LEGACY
A new survey reveals that just 20–22% of U.S. baby boomers expect to leave an inheritance, despite collectively owning more than half of all household wealth. Rising healthcare expenses, longer lifespans and shifting financial priorities are reshaping expectations around the so-called “Great Wealth Transfer,” leaving many younger Americans facing a future with less intergenerational support than anticipated.
A new nationwide survey is challenging long-held assumptions about the massive generational wealth shift expected in the United States. Despite owning an estimated $78 trillion in combined assets, only about one in five baby boomers say they plan to leave an inheritance to their heirs, signaling a major shift in retirement priorities and financial outcomes for younger generations.
The data comes from a large-scale Northwestern Mutual study of more than 4,500 adults, which found that most boomers are focused on ensuring their own financial stability rather than preserving wealth for the next generation. Analysts say the findings cut against years of projections about the “Great Wealth Transfer,” a widely discussed expectation that trillions of dollars would eventually flow to millennials and Gen Z.
Much of the wealth attributed to boomers is tied up in real estate, a category that has seen rapid appreciation but is often less liquid than cash. Many older homeowners are reluctant to downsize or sell, especially amid rising housing costs and limited supply. Financial planners note that tapping into home equity can be risky for retirees already concerned about long-term security.
Healthcare remains one of the most significant factors influencing inheritance decisions. Boomers are facing longer life expectancies, higher medical costs and uncertainty surrounding future care needs. These expenses often erode savings that would otherwise be passed down, and many survey respondents said they expect to use most of their assets to support their own daily living and medical protection.
Another notable shift is in mindset: only a small portion of boomers report that leaving money behind is a meaningful financial goal. Instead, many respondents prioritized independence, debt management and the ability to maintain their preferred quality of life during retirement. Advisors say this change reflects a broader cultural movement toward self-sufficiency rather than legacy building.
The ripple effects extend to younger adults, many of whom have assumed inheritance would help with home purchases, student loan burdens or retirement planning. Experts warn that relying on future family wealth can create unrealistic expectations and delay crucial financial decisions. As the data shows, not everyone will benefit from generational transfers, and disparities may widen over time.
Researchers also emphasize that inheritances will be unevenly distributed. While some families are likely to receive substantial benefits due to strong portfolios or minimal healthcare obligations, many others will see smaller or nonexistent transfers. This uneven landscape is expected to shape economic mobility, housing markets and long-term financial behavior.
As financial realities evolve, analysts recommend that families have explicit conversations about expectations and that younger adults pursue independent planning strategies. With economic pressures increasing and retirement needs expanding, the possibility of smaller inheritances may become a defining feature of America’s next financial chapter.
