Why Gen X Can't Count on the $84 Trillion Great Wealth Transfer by 2045 for Retirement

Financial experts reveal the truth behind the Great Wealth Transfer

The widely discussed Great Wealth Transfer, expected to move approximately $84 trillion by 2045, has generated optimism that Baby Boomers' wealth will secure retirement for Gen X and Millennials. However, the reality is more complex. Most of this wealth is concentrated among ultra-high-net-worth individuals, leaving Gen X with less inheritance than many expect.

Rising living expenses, longer retirement periods, and multiple financial responsibilities mean Gen X cannot depend solely on inheritances to fund their retirement.

Key Insights

• Although $84 trillion is projected to transfer by 2045, the majority is held by the ultra-wealthy, limiting Gen X inheritances.
• Due to high costs of living and extended retirement durations, Gen X must focus on saving, debt reduction, and healthcare planning rather than relying only on inheritance.
• Currently in their peak earning years, Gen X has an ideal opportunity to maximize retirement contributions and build financial independence.
• Open, honest discussions with Boomer parents about inheritance expectations and long-term care can prevent unexpected financial shortfalls.

The True Picture of Wealth Transfer for Gen X

Gen X often gets overshadowed in wealth transfer talks. While Boomers benefited from wealth passed down by the Silent Generation and Millennials have time to accumulate assets, Gen X faces pressing retirement needs.

Research from Cerulli Associates shows that much of the wealth transfer benefits the ultra-wealthy, not average families. Additionally, healthcare expenses for Boomers may reduce inheritance amounts significantly. Timing of inheritances may not align with Gen X’s retirement plans, making independent financial planning essential.

Advice for Gen X Clients

Maximize Peak Earnings to Secure Retirement

Gen X is uniquely positioned during their highest earning years to boost retirement savings. Prioritizing contributions to retirement accounts, managing debt, and preparing for healthcare costs are critical steps toward financial security.

Defining a “freedom number” — the amount needed to maintain a desired retirement lifestyle — helps Gen X take proactive financial measures now instead of relying on uncertain inheritances. Typically, saving 10% to 20% of income is recommended, but increasing this to 20%–30% can greatly improve retirement confidence.

Important Consideration

According to the Federal Reserve Bank of Economic Data, individuals aged 55-64 spend an average of $83,000 annually, highlighting the substantial cost of living during retirement.

The Importance of Cross-Generational Dialogue

Gen X should engage in transparent conversations with Boomer parents to set realistic expectations about inheritance and long-term care. This clarity enables informed financial planning and reduces the risk of unexpected financial gaps.

Conclusion

The Great Wealth Transfer is unlikely to fully address Gen X’s retirement challenges. Instead, inheritance should be viewed as a financial bonus, not a guaranteed safety net. By focusing on disciplined savings, strategic planning, and pursuing financial independence, Gen X can confidently prepare for retirement regardless of the wealth passed down.

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