Young Americans expect an average $320K inheritance, but how will they use it?

Young Americans expect an average $320K inheritance, but how will they use it?
Using their windfall for investing and saving is a priority, survey shows.
JAN 03, 2024

With a vast global generational wealth transfer of an estimated $84 trillion underway, young Americans are facing the enviable task of deciding how they will put any windfall to good use.

A recent survey by USA Today asked Americans ages 18 to 44 about their expectations for inheritance and what they intend to do with it. More than two-thirds of respondents had either inherited already or expect to do so, and the amounts are significant.

The average amount expected is $320,000, but most have more modest expectations, with 51% believing they will get (or have already got) more than $100,000; for 33%, it’s more than $200,000. However, for 15% it’s at least $500,000, and 6% have or expect to inherit $1 million or more.

The assets they expect to receive are cash (82%), real estate (62%), vehicle (41%), investments and ownership stakes (32%), and other property (19%).

With six-figure sums to consider, 76% of the heirs intend to save and invest as a priority, while paying off debt is important for 40%, with 69% of those saying an inheritance can clear their debts. However, just 20% intend to pay off their mortgage, a smaller share than will use their windfall for travel.

Although Gen Z and millennials appear to be interested in societal challenges and inequality, 92% of respondents have no plans to donate any of their inheritance to charities or other good causes. The survey found that 54% of those who expect to inherit or have already believe the Great Wealth Transfer will increase wealth inequality in the U.S.

The lack of philanthropic intention may be partly due to the expectation (or reality for some) of financially supporting aging parents (33%), with only around one-third of these having included this in their financial planning and spending behavior and 15% having taken on debt to help their parents (or intending to).

Latest News

Judge OKs more than $90 million in settlement money for GWG investors
Judge OKs more than $90 million in settlement money for GWG investors

Mayer Brown, GWG's law firm, agreed to pay $30 million to resolve conflict of interest claims.

Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs
Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs

Orion adds new model portfolios and SMAs under expanded JPMorgan tie-up, while eMoney boosts its planning software capabilities.

Retirement uncertainty cuts across generations: Transamerica
Retirement uncertainty cuts across generations: Transamerica

National survey of workers exposes widespread retirement planning challenges for Gen Z, Millennials, Gen X, and Boomers.

Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future
Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future

While the choice for advisors to "die at their desks" might been wise once upon a time, higher acquisition multiples and innovations in deal structures have created more immediate M&A opportunities.

Raymond James continues recruitment run with UBS, Morgan Stanley teams
Raymond James continues recruitment run with UBS, Morgan Stanley teams

A father-son pair has joined the firm's independent arm in Utah, while a quartet of planning advisors strengthen its employee channel in Louisiana.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave