The numbers sound almost too big to believe: $124 trillion is expected to pass from Baby Boomers to younger generations in what’s been dubbed “The Great Wealth Transfer,” according to Forbes.
But as the oldest Boomers turn 80, that transfer is looking a lot less certain.
Boomers were born between 1946 and 1964, and they now control over half of all household wealth in the U.S.
As of early 2025, their collective net worth topped $82 trillion, according to Newsweek.
That dwarfs the $42 trillion held by Gen X and the $16 trillion held by Millennials.
But living longer has financial consequences. Healthcare costs have surged, and long-term care isn’t covered by Medicare.
As Adam Spiegelman, founder of Spiegelman Wealth Management, told Newsweek, “People are living longer, but Medicare doesn’t cover long-term care, healthcare costs are exploding, and most families are completely unprepared.”
These rising expenses are hitting just as many Boomers hoped to pass on wealth.
Fidelity estimates a 65-year-old couple today will need about $330,000 just for medical expenses in retirement.
That doesn’t include costs from dementia or other chronic conditions, which can quietly drain assets years before any formal diagnosis.
A report by MIT AgeLab researcher Luke Yoquinto and AARP’s Karen Kali and Julie Miller found that dementia-related costs and risks can impact finances well before a formal diagnosis, with financial missteps often occurring early and quietly eroding savings that might have been intended for inheritance.
Home Equity Isn’t Always a Gift
Many Boomers are also sitting on home equity built up over decades of falling interest rates and rising property values.
But that wealth isn’t always liquid or easy to pass on. In fact, it can be more of a burden than a blessing.
Older homeowners often stay put because moving would mean higher property taxes and housing costs.
As Spiegelman told Newsweek, “The most tax-efficient way to transfer a home is through death, not sale.”
That means fewer homes are hitting the market, driving up prices for younger buyers. When homes are passed down, they often come with maintenance issues or sibling disagreements over whether to sell or keep the property.
Boomers Want to Enjoy Their Money
The traditional idea of leaving behind a large inheritance is shifting. Many Boomers now want to enjoy their money while they’re still alive.
A Charles Schwab study found that 45 percent of Boomers said, “I want to enjoy my money for myself while I am still alive.”
That means more spending on travel, home upgrades, and gifts to children during their lifetime instead of large sums after death.
For adult children expecting a major inheritance, that shift could result in disappointment.
Family Rifts and Delayed Inheritance
Another issue: not all families remain close. About 27% of Americans say they are estranged from a parent, child, or sibling.
Estrangement can complicate or even cancel out inheritance plans entirely.
Even when ties remain strong, longevity means inheritances often arrive late, sometimes after adult children have already retired or made major financial decisions without that expected help.
What could have been a life-changing sum often becomes a late-stage bonus.
The Bigger Picture
Boomers built their wealth during a time when good jobs were plentiful, college was affordable, and home prices made sense for the average family.
Many also had pensions and got in early on decades of rising stock and housing markets.
Their kids haven’t had it so easy. Gen X, Millennials, and Gen Z have faced skyrocketing living costs, heavy student debt, and wages that haven’t kept up.
The financial head start their parents enjoyed just doesn’t exist anymore.
As Spiegelman said, “The system has changed, and so have the outcomes.”
Even as Boomers eventually pass on assets, much of that wealth will be consumed along the way, by caregiving, taxes, or simply living longer than anyone expected.
“A large portion of Boomer wealth is likely to be consumed by healthcare and caregiving costs,” Spiegelman told Newsweek.
“Many families will be surprised by how little remains.”
In other words, the Great Wealth Transfer is real, but for many families, it won’t be the windfall they imagined.
Instead, it will highlight just how much of the system is built to absorb wealth before it ever reaches the next generation.