It’s been called the greatest transfer of wealth in history: Baby boomers, now ages 62 to 80 (born between January 1, 1946, and December 31, 1964), are estimated to hold at least $93 trillion in assets and are sitting on more money than Gen X and millennials combined. Said another way, the entire GDP of the United States was about $31 trillion in 2025—boomers have three times that amount.
But as they look toward the future and plan their legacy, the big question is: Where will all that money go?
A report from Visa Business and Economic Insights released this month finds a large chunk of it is unlikely to make it into the hands of future generations. And that only $36 trillion, or a little over a third, of that boomer wealth will actually get passed down to their Gen X and millennial heirs over the next 20 years. That’s equal to about $515,000 per inheriting household.
Why so little? That’s what’s left after subtracting over $4 trillion in debt (for mortgages and credit cards), all the money the top 1% will donate to charitable organizations, the enormous costs of retirement today, plus taxes and fees.
While boomers may be the wealthiest generation in history, many older homeowners are carrying mortgage debt in retirement—with 41% of those 65 to 79 years old and 31% of those 80 and older still owing money.
They also have other debt in the form of credit cards and auto loans, borrowing against brokerage accounts and other investment portfolios, plus personal and business loans. Taken together, this adds up to a lot less wealth to pass on.
When all is said and done, Visa estimates that of the aforementioned $36 trillion to be passed down, $28 trillion of it will likely go into savings and investments (including property), while future generations will only end up spending the remaining $8 trillion of their inheritance.
That’s not to say $8 trillion is chump change. It’s still a lot. And according to Visa, that money will likely be spent on a few key things: housing (buying a home or using as a down payment), automobiles (vehicles and related expenses such as insurance, maintenance, repairs, and gas), travel, and retail goods.
Millennials, in particular—who prioritize spending on travel, dining out, and leisure—will likely spend their inherited wealth on those things, the report concludes.
