Baby boomers, the richest generation in history, are aging and preparing to pass down a record-breaking amount of assets.
It has been estimated that millennials stand to inherit $30 trillion from their predecessors, a phenomenon that has been dubbed “the great wealth transfer.”
Millennials surpassed baby boomers as the largest living generation during recent years, though the latter is still the richest. Baby boomers control at least 70 percent of all disposable income in the US.
This unprecedented shift in assets could have profound effects on the economy. Unlike their elders, millennials have different economic priorities and experiences, which have shaped how they invest.
“Millennials are very community-oriented,” Mary Ellen Hancock, vice president and senior wealth strategist at PNC Wealth Management, told FOX Business, adding that there could be an increased amount donated to charities as a result of the wealth transfer.
Millennials, the majority of whom grew up during the Great Recession in the late 2000s, are also wary of the stock market, Hancock said, which means they could pull some of their inherited assets out and invest elsewhere.
However, for those that choose to stay invested in stocks, the makeup of their portfolios could differ from their predecessors’.