Where the Great Wealth Transfer will hit hardest — and what it means for advisors

Advisors looking to capitalize on the so-called “Great Wealth Transfer” may want to focus their attention on Maine, Hawaii, and Massachusetts, according to new Acuity research showing these states hold the highest concentration of senior wealth relative to population — a potential signal of where inheritance-planning demand will run highest.

Acuity’s researchers studied financial data to estimate the amount of wealth held by households headed by Americans over the age of 65 in each state.

The ranking was topped by Maine, which has an estimated $225,172 in wealth held by 65+ households for every resident in the state. Hawaii is next, with $207,338, while Massachusetts is in third place with $159,004. Washington, New Hampshire, Montana, New Jersey, Maryland, Oregon, and Florida round out the top 10.

“Older Americans play an increasingly important role in local economies, from homeownership and consumer spending to charitable giving and family support,” said Matthew May, CPA and accounting services leader at Acuity, in a statement. “These findings highlight where that influence is strongest and where the next generation may experience the largest transfer of wealth in the years ahead.”

Acuity notes that smaller states dominate the per-resident rankings, which is the result of a high concentration of retirees relative to their overall population.

However, the largest absolute totals for the generational wealth transfer reflect factors such as the size of the state, as well as its status as an economic and retirement hub. The highest total in the country is the estimated $4.2 trillion in wealth controlled by California’s 65+ households, with Florida in second place with an estimated $2.64 trillion in wealth. Acuity’s research also found that Texas, New York, Illinois, and New Jersey each exceed an estimated $1 trillion in senior household wealth.

Texas, in particular, has been in the spotlight recently thanks to the growth of Dallas’ financial sector. Recent data from the Federal Reserve Bank of Dallas show that financial activities in the city now account for a greater share of employment than they do in the major financial hub of New York City.

Read more: Dallas surpasses New York in share of financial sector employment

These wealth transfer figures are obviously important for advisors involved in estate planning and inheritance, but Acuity notes that they are also important for the businesses, housing markets, and local economies that depend on older Americans as consumers and investors.

The Great Wealth Transfer is a key issue in the financial advisory industry and the numbers cited are often mind-boggling - in 2024, for example, Cerulli Associates projected that $124 trillion in wealth will be transferred through 2048.

However, the vast sums involved in incoming wealth tsunami may not be quite as large as previously thought, according to recent research from Visa Business and Economic Insights. 

In a separate study released recently, BNY Wealth also warned that advisors working on the Great Wealth Transfer should expect to find extremely varied levels of preparation from their clients.

Earlier this year, Lorne Maltenfort, private wealth planning director at Wells Fargo Wealth & Investment Management, told InvestmentNews that, while the Great Wealth Transfer may be good for advisors, it also brings risks around issues such as privacy and cybersecurity.