What is the “great wealth transfer,” and why are economists paying attention to it?
The great wealth transfer refers to the movement of wealth from baby boomers to younger generations as assets are passed down through inheritances, gifts and other forms of family financial support. Because baby boomers accumulated significant wealth over their lifetimes, the transfer is expected to be one of the largest intergenerational shifts in wealth in U.S. history.
What makes the trend important is not just the size of the transfer, but its potential impact on financial decision-making. Wealth transfers can influence when people buy a home, invest, travel, start a business or make other major purchases. They can also affect how families save and build wealth across generations.
However, much of the public discussion focuses on headline estimates without examining how much wealth will actually reach heirs or how much of it will ultimately be spent. That is where our research aimed to provide a reality check, using Visa’s unique perspective on consumer spending trends
The “great wealth transfer” is often described as a $100 trillion-plus event. What does Visa’s research find?
The headline number is directionally right in the sense that baby boomers hold a substantial amount of wealth. But the more important question is how much of that wealth actually reaches younger households and how much of it is likely to be spent.
Our analysis finds that baby boomers hold at least $93 trillion in assets. Once you account for liabilities, retirement spending, taxes, fees and the concentration of wealth at the very top, the amount expected to transfer to Gen X and millennial households over the next 20 years is closer to $36 trillion.
That is still a significant amount of wealth. But it changes the story. This is not simply a $100 trillion-plus consumer spending wave. It is a substantial but more targeted transfer of wealth that will influence certain households, categories and financial decisions more than others.
If $36 trillion is being transferred, why does only a portion of that show up in spending?
Because inherited wealth does not behave the same way as income.
When people receive regular income, a larger portion is typically used for day-to-day spending. But when financially secure households receive inherited wealth, they are more likely to treat it as part of their balance sheet — something to save, invest, or allocate to long-term financial goals.
That distinction matters. Visa Business and Economic Insights (VBEI) estimates that of the roughly $36 trillion expected to transfer over the next 20 years, about $8 trillion is likely to translate into consumer spending, while roughly $28 trillion is expected to be saved or invested.
One reason is that many inheritance recipients are already in a stronger financial position before receiving the transfer. That means they may not use inherited money to fund everyday consumption. They may use it to pay down debt, build larger emergency reserves, accelerate investment goals, or set aside funds for future generations. For many households, the transfer is more about financial flexibility than spending it immediately.
So, the impact is real, but it is not evenly distributed across the economy. It is more likely to show up in high-consideration purchases and long-term financial decisions than in everyday spending.
Where are we already seeing the impact of this transfer in the economy today?
We are already seeing it in major financial decisions, particularly housing and travel.
Housing is one of the clearest examples. The transfer is not only happening through inheritances after death; it is also happening through living transfers, such as parents helping adult children with down payments. Among millennial homeowners, one in four received parental down-payment assistance, and 26 percent say they would not have been able to purchase their current home without that support.
Travel is another area where the impact is becoming visible. Some boomers are choosing to spend earlier with family rather than waiting to pass on assets later.
That is showing up in increased multigenerational and skip-generation travel, where grandparents travel with grandchildren and help fund shared experiences. Twenty-eight percent of grandparents have already taken a skip-generation trip, while another 35 percent plan to do so within the next three years.
More broadly, VBEI expects the spending impact to be most visible in housing, autos, travel and retail — categories where consumers are already making larger, more deliberate financial decisions.
What should businesses and financial institutions be paying attention to as this plays out over the next decade?
Businesses should pay attention to where inherited or gifted wealth changes consumer decision-making and not just where it increases spending.
For sectors such as housing, autos, travel and retail, the opportunity may come from consumers who suddenly have more flexibility to make a purchase, upgrade a decision or move faster than they otherwise would have. VBEI estimates autos could receive the largest annual spending lift, followed by housing, travel and retail.
For financial institutions, the opportunity is even broader because much of this wealth is expected to be saved or invested rather than spent immediately. The estimated $28 trillion likely to remain in savings, investments or property represents a significant opportunity for banks, wealth managers and fintech companies.
That creates important needs around financial planning, wealth management, estate planning, tax-aware decision-making, digital tools for moving and managing money, and support for families making intergenerational financial decisions.
The bigger takeaway is that the great wealth transfer is not just a future inheritance story. It is already shaping how families make decisions about housing, travel, saving and long-term financial security. Businesses and financial institutions that understand those decision points will be better positioned to serve consumers as these transfers continue.