Baby boomers are poised to transfer an estimated $36 trillion in wealth to their heirs over the next two decades, according to new analysis by Visa Business and Economic Insights. This substantial intergenerational wealth shift, often referred to as the Great Wealth Transfer, is expected to mainly benefit heirs who are already financially well-off.

Born between 1946 and 1964, baby boomers currently hold roughly $93 trillion in assets. After accounting for liabilities, retirement spending, and taxes, Visa projects that about $36 trillion of this wealth will be passed down, primarily to Generation X and millennial heirs, who were born between 1965 and 1996. The average inheritance per receiving household is estimated at $515,000; however, these inheritances are expected to be unevenly distributed.

The report highlights that close to 75 percent of households that inherit wealth will already rank among the country’s wealthiest at the time of receipt. This outcome largely reflects the concentration of wealth within the baby boomer generation. Those in the 90th to 99th wealth percentiles hold approximately $44 trillion, while the bottom 90 percent own $16 trillion combined. Wealthier boomers are more able to accumulate and pass on assets, while lower-wealth households tend to allocate more of their resources toward immediate expenses like healthcare and housing.

Analysts note that much of the inherited wealth will be saved or invested rather than spent, often channeling into real estate or stock markets. Jeremy Ney, a Columbia University business professor, pointed out that such transfers “don’t buy groceries or cars” but instead influence financial portfolios and tax considerations. This dynamic may contribute to expanding wealth disparities between richer and poorer Americans, a trend already underway.

Despite this, the transfer is anticipated to positively influence economic growth. Visa estimates the inheritance-related spending to total about $8 trillion, which could slightly increase annual consumer spending growth from 2.0 percent to 2.1 percent over the next twenty years. This spending is expected to focus on sectors such as housing, auto purchases, travel, and retail.

One factor driving these wealth patterns is increased longevity. Jonathan Parker of MIT noted that delayed transfers mean heirs often receive inheritances in middle age rather than earlier in life, allowing them to accumulate their own wealth beforehand. Additionally, some wealth is already being passed down during boomers’ lifetimes, with parents helping children or grandchildren with expenses such as home down payments or family vacations.

Visa’s analysis excludes the wealth held by the top 1 percent of richest boomers, reasoning that funds from this group are often directed toward charitable foundations and private investments rather than typical spending behaviors. Wayne Best, Visa’s chief economist, emphasized that this group’s financial activities do not represent the broader economy.

Overall, the transfer of wealth from baby boomers will remain a significant economic event with complex implications, heavily favoring already affluent heirs and contributing to ongoing wealth inequality in the United States.