Why the ‘wealth transfer’ from boomers to their heirs won’t be as large as expected

The “wealth transfer” from baby boomers to their heirs is not expected to be as large as initially thought for several reasons. First, the number of boomers is much larger than in previous generations, resulting in more wealth distribution from the same pool of assets. Second, rising healthcare costs, stagnant wage growth, and decreased Social Security benefits make it harder for boomers to accumulate financial wealth throughout their lifetime. Third, many boomers are opting to spend more on retirement-related expenses, including home expenses, travel, and leisure activities, instead of contributing to a savings plan for their heirs. Finally, increased taxes on estate and gift taxes reduce the amount that boomers can hand down to their heirs.