Boomers Make Up the Lion’s Share of the Ultra-Wealthy: Here’s When That Will Change and Why
Written by
Paige Cerulli
Edited by
Zuri Anderson
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Many baby boomers are financially well-off, benefitting from buying houses during times when prices were low. In fact, boomers make up the majority of the ultra-wealthy population in the world, though that’s going to change soon.
The Altrata World Ultra Wealth Report 2025 details information about the world’s richest individuals, the ultra-wealthy, who have a net worth exceeding $30 million. According to the report, baby boomers make up a 45% share of the ultra-wealthy; that share is twice the size of the next-largest share, Gen X. Over the next two decades, the boomer population’s share will be reduced to 17%, while the Gen X, Gen Z and millennial population will comprise 80% of the ultra-wealthy.
That’s because of a transition called the “Great Wealth Transfer,” and it’s poised to have a major impact on wealth distribution throughout the world.
Understanding the Great Wealth Transfer
Jaclyn Smith, senior wealth strategist at Wells Fargo, explained that the Great Wealth Transfer refers to the period between now and 2048. During that time, one of the greatest wealth transfers in history is predicted to occur, in which approximately $100 trillion will pass down to younger generations.
“This is wealth that was created during the lifetimes of baby boomers and will change hands to their children and grandchildren, or possibly to charitable recipients for those that are charitably inclined,” said Smith.
According to Brian Gray, certified public accountant (CPA) and tax partner at Gursey Schneider in Los Angeles, that wealth is more than just cash and public securities.
“It also encompasses ownership in private businesses, including real estate assets,” he explained.
How the Great Wealth Transfer Could Impact the Economy
As younger generations, like millennials and Gen X, stand to inherit wealth, that transfer could have several effects. According to Ashley Weeks, vice president and wealth strategist at TD Bank, many younger beneficiaries are hoping to use those inherited funds to boost inadequate retirement savings.
“Relying on an inheritance is a dubious retirement plan, but quite a few beneficiaries will likely receive a retirement lifeline,” she said. “The Great Wealth Transfer may also alleviate the housing supply shortage to a certain degree, though affordability will likely continue to be a challenge.”
Smith explained that when beneficiaries inherit money they didn’t generate themselves, they face both an opportunity and a risk. They can use that capital to fund new ventures, and there’s room for some experimentation, giving them new opportunities. At the same time, there’s also a risk that the beneficiaries could get disoriented about the value of money, potentially making poor decisions.
How Families Need To Prepare for the Great Wealth Transfer
Weeks recommended that families prepare a formal estate plan to ensure that the wealth transfer process occurs smoothly.
“Many individuals with a complex asset mix find that a revocable trust is the ideal tool for estate planning to avoid probate and create guardrails for beneficiaries,” she said. Additionally, an estate plan should include a will and documents like a durable financial power of attorney and advance directives for healthcare.
When businesses are included in an inheritance, additional special planning is needed. Gray suggested that families with substantial assets focus on business succession planning for privately-owned companies, which should include real estate assets. A focus on tax reduction strategies may also be valuable in preparing to transfer wealth.
Smith said that non-financial planning needs to take place in addition to financial planning. For example, it’s important to have conversations about where the wealth came from and what it represents for the family.
“These discussions help attach meaning to what beneficiaries will receive,” she explained. “One effective way to express this is through a legacy letter, where grantors can share their intentions, hopes and expectations for how the family’s resources should be used and cared for.”
How Younger Generations Can Prepare To Inherit Wealth
Both the giver and the recipient should be responsible for ensuring the beneficiary is prepared to manage the complexities that come with substantial wealth, explained Smith.
“This includes developing financial, planning, tax and risk management skills, as well as the emotional readiness to handle their role responsibly,” she said. Smith recommended that families build an advisory team including a financial advisor, estate planning attorney, CPA and possibly a family dynamics specialist to navigate the transfer of wealth.
Weeks advised that beneficiaries assume nothing until the estate check clears. For example, extended lifespans and growing long-term care costs could reduce the inheritance that some beneficiaries expect to receive.
“A better approach is to develop a sound financial plan that only incorporates a gift or inheritance once the funds are received,” she said. “The exercise of building a financial plan will enhance the skills needed to manage a prospective windfall while also preparing for a scenario where the inheritance doesn’t meet expectations.”
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