tl;dr
Morgan Stanley warns that the historic wealth transfer from baby boomers to younger generations could deepen economic inequality, with stark disparities in inheritance amounts and access to generational wealth.
**Morgan Stanley Warns of Historic Wealth Transfer as Baby Boomers Pass On Trillions to Younger Generations**
*The largest intergenerational wealth transfer in history could reshape economic dynamics, but disparities in access to inheritances highlight growing inequality.*
In a recent podcast, Morgan Stanley equity strategist Michelle Weaver warned of an “unprecedented” shift in wealth as the baby boomer generation—those born between 1946 and 1964—reaches the twilight of their lives. According to the bank’s analysis, this demographic will pass on tens or even hundreds of trillions of dollars to Gen Z, millennials, and Gen X, marking the largest wealth transfer in history.
Weaver, citing a survey by Morgan Stanley’s AlphaWise unit, revealed stark disparities in how this wealth will be distributed. Nearly half (50%) of beneficiaries are expected to receive less than $100,000, while 33% will inherit under $500,000. Only 10% will receive $500,000 or more. However, the distribution is far from equal. Higher-income households are significantly more likely to benefit, with 43% of those in the upper income bracket reporting they have received or expect to receive an inheritance, compared to just 17% of lower-income households.
“This highlights a clear wealth divide,” Weaver noted, underscoring how existing economic inequalities may deepen as baby boomers pass on their assets.
The survey also explored how recipients plan to use their inheritances. A majority (60%) intend to allocate funds toward savings, retirement, or investments, reflecting a long-term financial strategy. About a third (33%) plan to use the money for housing or debt repayment, while smaller percentages cited spending on daily expenses, travel, education, starting businesses, or charitable donations.
Despite the magnitude of the transfer, only 14% of U.S. consumers expect to inherit wealth, and 17% have already received it. Weaver emphasized that while the influx of capital could stimulate economic growth, the uneven distribution risks exacerbating systemic gaps.
As the baby boomer generation transitions out of the workforce, the implications of this wealth shift will ripple across industries, from finance to real estate, and challenge policymakers to address inequities in access to generational wealth. For now, the $100 trillion-plus transfer remains a double-edged sword—offering opportunity for some, while leaving many behind.