- posted: Jul. 15, 2021
According to the Wall Street Journal In the United States those over 70 years old own $35 trillion dollars. This equals 27% of all the wealth in the United States and is 157% of the US domestic product. This is about double the inflation adjusted wealth than that group had 30 years ago.
It is estimated that between 2018 and 2042 this generation will give out over $70 trillion dollars. About $61 Trillion will go to heirs and the younger generation and the remainder will go to philanthropy. The average inheritance from the baby boomers was $212,854.00 versus $146,846 in 1988.
This shows the economic power of the baby boomers. They are giving this wealth up to the younger generation to buy homes and start businesses. These persons inheriting money will also take more risks that the older generations by investing in more risky investments such as the stock market and crypto currencies.
Besides inheritance the baby boomers have given more gifts. In 2016 they gave over $75 Billion in gifts, because of the large gift exemption of $11.7 million for gifts now. This amount is scheduled to go down.
The Average inheritance from this group in 2019 was $212,854.00 versus the amount of $146,846 in 1988, according to Capital One Financial