Gen Z inheritance expectations are high, with many young adults anticipating significant financial gifts from their Boomer parents. However, recent data reveals a disconnect: while many Gen Zers expect to inherit wealth, a substantial number of Boomer parents are not planning to leave any inheritance behind, creating a notable generational gap.
Expectations vs. Reality: The Inheritance Gap
According to a 2025 Northwestern Mutual study, about 30% of Gen Z expect to receive an inheritance, with over half of those viewing it as critical to their long-term financial security. Yet, many Baby Boomers are either uncertain or not planning to leave an inheritance, with 39% reportedly lacking a will. This mismatch narrows the anticipated wealth transfer between generations, as younger adults’ expectations increasingly diverge from what older generations intend to leave behind.
Gen Z adults are also the most likely generation to plan on leaving an inheritance themselves, with 39% indicating such intentions—surpassing other age groups. Despite this, the overall expectation to receive inheritance is declining among younger generations, reflecting shifting family wealth dynamics and financial behaviors.
Financial Preparedness and Challenges
While Gen Z looks forward to inheriting wealth, many feel unprepared to manage it. Research shows two-thirds of Gen Z adults lack confidence in their financial literacy, which may affect their ability to steward inherited assets effectively. Additionally, many young adults anticipate being financially burdened by their aging parents, with concerns about medical and long-term care costs impacting their own financial planning.
This evolving landscape presents challenges for wealth management firms, which must adapt to Gen Z’s values, including their strong preference for sustainable investing alongside financial returns. The “Great Wealth Transfer”—projected to involve trillions in assets over the coming decades—requires new strategies to engage younger generations and close the legacy gap across families.
In summary, while Gen Z’s inheritance expectations remain high, the reality of Boomer parents’ estate plans and financial preparedness introduces uncertainty in the anticipated flow of wealth. This gap underscores the need for improved intergenerational communication and financial education to ensure smoother transitions and sustained long-term security.