The GWT.
The "Great Wealth Transfer" refers to the anticipated shift of substantial assets from the Baby Boomer generation to younger generations over the coming decades. Globally, it's projected that over $100 trillion will be transferred within the next 25 years, with approximately $18 trillion expected to be handed down by 2030.
In the United States, estimates suggest that Baby Boomers will pass down around $30 trillion to Generation X (born 1965-1980).
In Australia, Generation X is set to overtake Baby Boomers as the wealthiest generation, driven by rising property prices and share market gains. This shift is expected to continue as Boomers downsize in retirement, potentially benefiting younger generations through inheritance.
While specific data for other regions and countries is limited, it's evident that significant intergenerational wealth transfers are occurring globally. The magnitude and impact of these transfers vary based on factors such as economic conditions, cultural practices, and demographic trends.
It's important to note that the distribution of these inheritances is often uneven, with wealthier families passing down more substantial assets, potentially exacerbating existing wealth inequalities.
As this wealth transfer unfolds, it presents both opportunities and challenges for financial planning, taxation policies, and efforts to address wealth inequality across different societies.