In the coming decade, we’re about to witness one of the largest transfers of wealth in history. 

A whopping $84 trillion is ready to change hands, and contrary to popular belief, Generation X is set to be the biggest beneficiary. 

Let’s explore this fascinating trend and its implications.

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• Generation X, not millennials, are set to inherit the largest share of the $84 trillion wealth transfer.

• The average age of those inheriting $5 million+ is 46.1, squarely in the Gen X range.

• $20 trillion to be passed down from ultra-wealthy individuals worth $30 million or more.

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The $84 Trillion Wealth Transfer: Why Generation X Stands to Gain the Most

The Unexpected Heirs: Generation X Takes Center Stage

While much of the media spotlight has been on Millennials and Generation Z as the primary inheritors, recent research paints a different picture. 

According to a study by Wealth-X, the average age of individuals in North America set to inherit fortunes from parents worth $5 million or more is 46.1. 

This places the bulk of these heirs squarely in the Generation X bracket, defined as those between 44 and 59 years old today.

Even more fascinating is that for the most substantial inheritances—from parents worth $30 million or more—the average age of recipients climbs to 47.6. 

This data indicates that Gen X is first in line for these massive wealth transfers.

The Scale of the Transfer

The numbers involved in this wealth transfer are truly mind-boggling:

• Over the next 10 years, 1.2 million individuals worth $5 million or more will pass down more than $31 trillion.

• Nearly two-thirds (64%) of this wealth, or about $20 trillion, will come from the ultra-wealthy – those worth $30 million or more.

• The super-wealthy (worth $100 million or more) will account for almost half of the total $31 trillion being handed down.

• Billionaires alone will pass down approximately $5 trillion.

Implications for Wealth Management and Luxury Industries

This impending transfer presents both opportunities and challenges for wealth management firms, luxury companies, and real estate businesses. 

For instance:

• Wealth management firms need to adjust their focus from primarily targeting Millennials and Gen Z to including Generation X in their client acquisition strategies.

• 2. Luxury companies and real estate firms should reconsider their marketing approaches to appeal to this often-overlooked generation of inheritors.

• 3. Philanthropic organizations may need to adapt their outreach and engagement strategies to align with the values and priorities of Gen X inheritors.

Changing Values and Priorities

As wealth changes hands, so do the values and priorities guiding its use. 

The next generation of wealthy individuals, including Gen X, are likely to be:

• More tech-influenced in their approach to investing and wealth management

• Focused on environmental and social justice issues

• Globally minded in their outlook and investment strategies

• Interested in new technologies, clean energy transitions, and impact investing

These shifting priorities may not always align with existing family business structures or the legacy plans of the current wealth holders, potentially leading to significant changes in how this wealth is managed and invested in the future.

While Millennials and Gen Z have been the focus of much discussion around inheritance, it’s clear that Generation X will gain the most from the Great Wealth Transfer. 

With their newfound resources, it will be fascinating to see how Generation X shapes the future of finance, investment, and social impact.

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