Generation X, defined as individuals between the ages of 44 and 59, has been largely overshadowed in discussions about the upcoming Great Wealth Transfer. While the spotlight has been on millennials and Generation Z, it turns out that Gen Xers are poised to receive the largest windfalls in the near future. According to Wealth-X, the average age of individuals in North America set to inherit fortunes from parents worth $5 million or more is 46.1 years old. The average age of children expected to receive the most substantial inheritances – from parents worth $30 million or more – is 47.6, highlighting the significant wealth potential for Generation X.
The Wealth Transfer Landscape
In the next 10 years, a staggering $31 trillion in wealth will be passed down from 1.2 million individuals worth $5 million or more. The distribution of this wealth transfer is highly concentrated at the top, with nearly two-thirds coming from the ultra-wealthy, defined as those worth $30 million or more. What’s even more astounding is that almost half of this total amount will come from individuals worth $100 million or more. Billionaires alone are set to pass down approximately $5 trillion, painting a picture of extreme wealth passing down through generations.
As this massive wealth transfer unfolds, inheritors from Generation X, millennials, and Gen Z will bring with them different values and priorities compared to previous generations. Wealth management firms, luxury companies, and philanthropies will need to adapt to cater to the evolving needs of these new clients. While much attention has been given to millennials and Gen Z, it is clear from the Wealth-X report that Generation X will be at the forefront of inheriting from their wealthy parents.
The narrative around inheritances has predominantly focused on younger generations, but the data suggests that Generation X will be the first in line to receive substantial wealth transfers. While more than half of millennials are expecting inheritances of at least $350,000, the real wealth potential lies with Gen Xers. With an average age of 46.1 for those inheriting fortunes of $5 million or more, Generation X represents a significant market that has been overlooked in wealth management strategies.
Wealth management firms, luxury companies, and real estate firms targeting the next generation of wealthy clients need to shift their focus towards Generation X. The time has come to recognize the wealth potential within this age group and tailor services to meet their needs. As the Great Wealth Transfer looms on the horizon, it is crucial for businesses to adapt to the changing landscape of inheritors and provide them with the support and services they require to manage their newfound riches.