A generation often overshadowed by the focus on the financial habits of millennials and baby boomers will become the recipients of the most significant windfall over the next decade, according to a report from Cerulli Associates.
Gen X, or those currently aged between 45 and 60 years, will receive nearly $13.9 trillion as part of the great wealth transfer over the next 10 years, or about $1.4 trillion annually. As a result, financial advisors should start honing the services Gen X members will likely benefit from the most, including retirement planning, estate and tax planning and mortgage refinancing.
The Cerulli report notes that while millennials will still inherit the most money over the next 25 years, totaling $45.6 trillion, Gen X members will receive more money than any other generation in the near term. Over the next quarter century, their inheritance will reach $39 trillion, with an estimated median transfer of roughly $199,000. They also make up the second biggest client base for financial advisors after baby boomers. As of year-end 2023, Gen X made up a quarter of U.S. advisors’ clients, up from 20% in 2021, according to a survey Cerulli conducted in 2024. In comparison, only 9% of advisors’ clients in 2023 were millennials or Gen Z members.
What’s more, the percentage of people who are viewed as “advisor reliant” goes up substantially as Gen Xers move from their 40s to their 50s, noted Chayce Horton, senior analyst with Cerulli Associates. A survey Cerulli completed last year found that about a third of people in their 40s fall into the “advisor reliant” category. By the time people reach their 50s, that figure moves to about one-half.
“I think [advisors] are experiencing firsthand that the baby boomer generation, although very wealthy, is also very well-served by existing institutions and existing advisory offerings,” Horton said. “As that begins to shift, as wealth begins to shift down to Gen X, a lot of advisors see Gen X as the next great opportunity for advice.
“I heard anecdotally from a lot of the firms that the focus on millennials is kind of more of a marketing idea than an execution idea. Where the dollars are really moving and where the interest in serving the next great opportunity exists is with Gen X,” he added.
This is particularly true because Gen X members may face the double burden of taking care of aging parents while also shouldering college tuition costs for their children. Cerulli expects long-term care and other health-related expenses for the older generations to rise at a faster-than-average rate over the next 15 years, and worked those calculations into the final wealth transfer estimates. Still, for many members of Generation X, finding a solution that ensures their parents receive high-quality long-term care is even more important than saving for retirement, which is a significant expense, Horton noted.
At the same time, Gen Xers have already faced some unique obstacles to their financial well-being, the report notes, including the dot.com bubble and the Great Financial Crisis. Between 2007 and 2010, they lost 38% of their median net worth, or $24,000, more than any other age cohort. They are also less likely to benefit from pension plans than their parents were, while 401 (k) plans were still not as widespread as they are today when this generation entered the workforce.
This means financial advisors would be well-served to focus on courting Gen Xers at this pivotal moment in their lives, Horton said. Estate planning and tax planning services are of high priority to this generation, as is creating a smooth process for transferring the wealth from one generation to another. In addition, those millennials who fall into the ultra-high-net-worth bracket would probably benefit from advice on philanthropy and charitable giving and creating mission statements for how the family should approach its wealth.
However, when it comes to how members of Gen X prefer to be approached by their advisors, there is no “one size fits all” solution, Horton noted. Those who are in the older cohort for this generation will be more closely aligned with baby boomer preferences, including holding face-to-face meetings with their advisors and receiving detailed quarterly reports on their investments. Younger Gen Xers tend to be more akin to millennials, preferring shorter, more frequent digital communication from their advisors.
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