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Many younger (non-senior) Americans expect a future inheritance to help stabilize their finances, pursue home ownership, or fund their own retirement plans.
But many baby boomers have a different endgame. They plan to spend more of their money on themselves while they're still alive.
Younger adults, take heed. Don't count on a huge lump sum from your folks to dig yourself out of credit card debt or pay for your kids' college. Here's what to expect instead.
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Expect a modest inheritance (if any)
While data from Northwestern Mutual shows that most Gen Z (63%) and millennial (69%) adults believe inheritance will be "highly critical" or "critical" to their financial future, many families have never formally discussed whether any money will actually be passed down.
Financial planning, instead, is rife with unspoken expectations.
Even if Mom and Dad have said they are going to leave you a million dollars, plenty can happen in the coming decades to wipe out that stash. Inflation, market swings, longevity, and medical bills can all take large cuts.
Know that many boomers are not prioritizing inheritance
While a lot of wealth will shift generational hands in the coming decades – $124 trillion according to estimates – most millennials and zoomers (Gen Z) won't get a slice.
Many are eagerly anticipating a cut; however, the money will largely remain concentrated among the nation's wealthiest Americans.
According to Northwestern Mutual's 2025 Planning & Progress Study, 30% of baby boomers expect to leave an inheritance.
Even among the wealthy, leaving an inheritance isn't a given. Northwestern Mutual found that only about 50% of American millionaires plan to leave an inheritance.
Many retirees want to spend their money on themselves
Increasingly, boomers want to enjoy their retirement savings rather than preserve cash for heirs.
A Charles Schwab financial study found that 45% of high-net-worth boomers would rather enjoy their wealth while alive. Many subscribe to the "die with zero" philosophy, with the goal of enjoying the wealth they amassed during their lifetimes and die with nothing left in the bank.
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That is exactly what The Definitive Guide to Retirement Income helps answer.1 <p class="">Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. Guides are provided by Fisher Investments. The publisher may be compensated when readers request a guide.</p> It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn More Here ›
They may prefer to give you cash gifts now
Some boomers who plan to die with $0 still want to help the next generation financially. However, they prefer to treat their loved ones to large lump sums now – while they're still here to see the joy of helping them succeed. Why wait until they're dead to do good?
Roughly 21% of boomers want to see how the next generation chooses to spend any inherited funds, a small but significant minority.
Prepare for health care costs that can drain savings
Long-term care is one of the biggest threats to inherited wealth.
According to CareScout's 2025 Cost of Care Survey, a non-medical caregiver costs a national median of about $6,673 per month, assuming 44 hours of care per week. A semi-private nursing home room costs about $9,581 per month, while a private room costs about $10,798 per month.
Many boomers with significant funds now who intend to leave a cash gift may wind up dying with more debts (funeral bill, medical costs) than assets.
Plan for retirees living far longer than previous generations
Retirement savings need to last longer now than in previous decades.
The Social Security Administration notes that many healthy 65-year-olds today live into their 80s or 90s. Longer retirements naturally increase how much money older Americans need during their lifetimes.
Longevity calculators on the Social Security website can help you plan for how long your savings will need to last.
Your parents have less money than you think
Even when boomers leave money behind, the amounts are often more modest than younger relatives expect. Among the boomers planning to leave an inheritance, experts expect it to total less than $50,000.
While $50,000 is a generous lump sum, it's not life-changing money. It may be enough to pay off credit card bills and partially fund a year of college tuition, but unlikely to stabilize the next generation's finances or fund their retirement.
Factor in rising retirement expenses
Boomers are also navigating rising housing, insurance, and healthcare costs.
For medical care alone, Fidelity research (July 2026) shows the average couple will spend $371,000 (after tax) on health coverage throughout their retirement.
Additional data from the Center for Retirement Research at Boston College reveals that the average 65-year-old should set aside at least $135,000 for long-term care needs.
As women live longer, they should earmark additional funds. The cost of five or more years of care in a long-term facility reaches $665,000.
With such astronomical costs, even financially comfortable retirees wipe out sizable cash reserves.
Don't plan your own retirement around a future inheritance
Financial planners caution against treating inheritance like guaranteed money.
Amid myriad future unknowns, younger adults need to rely less on future inheritance and more on their own long-term planning.
Increasing retirement contributions, reducing debt, improving income stability, and consistently investing may prove more reliable than waiting for future wealth transfers that may never fully materialize.
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Recognize that it's their money, not yours
Inheritance expectations are also emotional.
Some boomers feel they already supported their children through assistance with housing and tuition, or other family support over the years. Many simply want to enjoy retirement after decades of working and saving.
Parents are not required to leave the next generation anything.
There's a growing movement of those who plan to leave their kids no inheritance whatsoever. Adherents believe that wealth should not remain concentrated among a few, but rather serve a broader good.
To paraphrase one laconic parent, "If they're capable, they'll make their own money. If not, they're just wasting mine."
Bottom line
A massive generational wealth transfer is still expected over the coming decades, but the redistribution will be far from even. Many younger Americans may inherit far less than they anticipate.
Longer retirements, rising healthcare costs, and changing attitudes about spending are all reshaping how much wealth boomers can reasonably grow for themselves, let alone leave behind.
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- 14 moves seniors could benefit from but often forget about.
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