A majority of young Americans are counting on family wealth to shape their future, according to a new survey by insurance agency Choice Mutual that digs into expectations around inheritance.
Roughly two-thirds of Americans between the ages of 18 and 43 either expect to receive or have already received an inheritance from their parents. On average, they believe they'll inherit about $334,850.
Most Say They'll Save Or Invest The Money
“The Great Wealth Transfer is surely on its way,” said Choice Mutual CEO Anthony Martin. But what stood out most was how younger generations are planning for the money long before it arrives.
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Among those expecting an inheritance, 73% said they plan to put the money into savings, while 57% said they would invest it. Others plan to use it for housing costs, debt repayment, or saving for their own children.
More than seven in 10 expect to inherit cash, and 69% believe real estate will be part of the package. Investment accounts, property, and business ownership stakes were also mentioned.
“This is not just wishful thinking,” the study notes. “Sixty-one percent of those surveyed have had a direct conversation with their parents about an expected inheritance or have seen a will or trust.”
Still, the optimism has limits. More than half – 53% – said they expect to be financially burdened by supporting their aging parents. About one in two said they already have or plan to support their parents financially.
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The Emotional Cost Of Financial Pressure
This financial stress is already shaping their lives. 60% said they feel anxious about future support responsibilities, and 52% said it's already impacting their financial plans.
About one-third of those surveyed even admitted they resent their parents for not being in a stronger financial position.
In some cases, the anticipation of inheritance is influencing how people live now. One in 10 said they carry more debt than they otherwise would, assuming they'll use the inheritance to pay it off. Around 9% feel less pressure to save or earn money, and about one in six said just knowing the money is coming makes life less stressful.
Experts project that nearly $100 trillion will change hands from baby boomers to younger generations over the next 25 years. But as Martin points out, that doesn't mean every family will benefit.
“Not every household will take part in this transfer,” he wrote. “And the financial burdens of aging remain steep for millions of Americans.”
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