There is a big gap in expectations between what older generations plan to pass on and what younger generations expect to receive from the massive $90 trillion wealth transfer, according to a new study.
As for Generation Y, 32% of those born between 1981 and 1996 expect to receive an inheritance, according to financial giant Northwestern Mutual.
However, only 22% of Gen Xers and Boomers (the generation born between 1955 and 1980) plan to make their dreams come true.
Among millennials who expect to receive an inheritance, 59% say the expected transfer of wealth is either extremely important or critical, and that without an inheritance they âwould not be able to achieve long-term financial security or retire comfortably.â
The study found that this group of millennials expect their inheritance to cover six percent of their total retirement income.
The results show that the gap in expectations among Generation Z is even wider.
ââŠNearly four in 10 (38%) expect to receive an inheritance (not including the 6% who say they already have). But only 22% of Gen Xers and 28% of millennials say they plan to leave behind a financial gift.â
Some 54% of Gen Zers who expect to receive an inheritance also say it is critical to their long-term financial security and retirement, with this group expecting an expected inheritance to cover 10% of their total retirement funding.
The Northwestern Mutual survey was conducted by The Harris Poll in January and included 4,588 U.S. respondents aged 18 and older.
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