Baby boomers are by far the wealthiest generation.
But this may change in the next 20 to 35 years, as the boomer generation will leave behind approximately $83.5 trillion to the next generations. This projection comes from a recent study by Swiss investment bank UBS, as reported by NewsWeek.
The largest transfers are expected in the Americas.
Huge Wealth Transfers
Of the total $83.5 trillion, about $9 trillion will first be passed between spouses, mostly in the Americas, according to this year's UBS Global Wealth Report.
Since women generally outlive men and couples often have an age gap, these inheriting spouses will likely hold onto this wealth for an average of four years before passing it on to the next generation.
Over 10 percent of the $83.5 trillion will likely be transferred by women.
This wealth will mostly go to Gen Xers and millennials — those born between 1965-1980 and 1981-1996.
The average age of these recipients will be around 59 years old.
The people passing on the wealth will be around 84 years old.
Boomers, born between 1946 and 1964, are currently between 60 and 78 years old.
In the Americas, each person will transfer nearly $1.2 million, much more than in Asia-Pacific and Europe, the Middle East, and Africa (EMEA), where the amounts are about $100,000 and $300,000, respectively.
Boomer Wealth in the U.S.
According to Federal Reserve data, U.S. boomers have a total net worth of $78.55 trillion.
Many own homes, have paid off their mortgages, and have savings to pass on to their children and spouses.
In comparison, American Gen Xers hold an estimated $39.09 trillion, while millennials hold about $14.21 trillion.
A large portion of the $83.5 trillion is expected to be transferred within the next 10 years, as those over the age of 75 hold nearly one-fifth of the world's wealth.
Life expectancy ranges between 82 and 86 years in most parts of the world, suggesting an imminent wealth transfer.
Potential Challenges
Some of this wealth might be lost to administrative fees, legal costs, and inheritance taxes.
Despite these potential losses, the transfer from boomers to Gen Xers and millennials could be the largest wealth transfer in history.
