More Americans are planning to leave a financial gift for their loved ones or a donation to a charitable organization, but are too many people pinning their financial security on receiving an inheritance?
While around three in ten of respondents to a new survey indicated that they plan to pass on a share of the $90 trillion generational wealth transfer to their heirs (up from 26% in 2024) and just 20% expect to receive an inheritance (down from 25% last year).
Gen Z now leads all age groups regarding their intention to pass on wealth (39%) while 30% expect to receive one. Millennials remain aligned, with 32% planning to give and 26% anticipating an inheritance, while 26% of Gen X and 30% of Boomers+ plan to leave one.
Leaving an inheritance is highlighted as the single most important financial goal of almost two thirds of respondents, especially younger generations who appear to be already considering their own mortality with 68% of Gen Z and 74% of Millennials noting the importance of this goal versus 66% of Gen X and 47% of Boomers+.
"The number of young Americans poised to benefit from the Great Wealth Transfer is growing, and if generational wealth planning becomes an even higher priority in people's lives, more will participate," said Kamilah Williams-Kemp, chief product officer at Northwestern Mutual. "Many adults feel like they can't leave a legacy tomorrow without sacrificing their goals today – but the silver lining is this: with comprehensive financial planning, it's very possible to do both."
Almost six in ten (57%) of those expecting a windfall say their long-term financial security depends on it and the report from Northwestern Mutual reveals that those who say an inheritance is critical or very critical to their financial security spikes to 63% among Gen Zs and to 69% among Millennials.
There is also a gap in preparedness for leaving a legacy, with 60% of those intending to do so saying they have had a conversation with beneficiaries but 39% of Boomers and 61% of Gen Xers have not confirmed their intentions by making a will.
This disparity creates an opportunity for advisors to not only educate but to facilitate estate planning: wills, trusts, life insurance, annuities, tax-efficient transfer strategies, even multi-generational family meetings - three in four parents (77%) say they would feel comfortable formally including their teenage or young adult children in their annual meeting with their financial advisor.
"Across generations, Americans are placing a high value on leaving a legacy," said Williams-Kemp. "Gifting to the next generation is a deeply personal and important financial goal that requires thoughtful planning at every stage of life. Whether you're just starting your financial journey or well into retirement, having the right tools in place – like a will, trust, or life insurance – can help provide stability and protection for your loved ones now and in the future.
Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.
Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.
It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.
Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.
Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
