Trillions Set to Change Hands: Baby Boomers Gear Up for Historic $83 Trillion Wealth Transfer

• The substantial shift in wealth from older to younger generations is currently underway.
• Recent studies highlight an often-overlooked aspect: the horizontal movement of wealth within families.
• According to the 2024 Global Wealth Report by UBS, $83 trillion is expected to be transferred in the next two decades.

Discover the transformative impact of wealth transfer on future generations and its economic implications.

Massive Intergenerational Wealth Transfer on the Horizon

In the next two decades, older generations are projected to pass on $83 trillion in assets, an amount equivalent to the global economic output in a year. This transfer is not just vertical but significantly horizontal, potentially altering the financial landscape.

The Understated Shift: Horizontal Wealth Transfer

Horizontal wealth transfer refers to assets being handed to spouses first before reaching children or other relatives. UBS reports that about 10% or $9 trillion will move horizontally, significantly impacting women due to their longer life expectancy.

Impact on Generation X and Baby Boomers

Gen X, born between the mid-1960s and early 1980s, stands to receive $31 trillion from their predecessors in the next decade. Furthermore, Ernst & Young (EY) has noted that baby boomers will transfer around $3 trillion to their heirs before the end of this year, forming part of the largest wealth transfer in history.

Conclusion

The imminent wealth transfer, the largest in history, will reshape financial frameworks, particularly benefiting women and Gen X. This unprecedented shift underscores the need for strategic financial planning and offers immense opportunities for wealth management and advisory sectors.