The $124T Great Wealth Transfer by 2048 

Advisors seeking to capitalize on the ongoing intergenerational “great wealth transfer” must establish relationships with clients’ spouses and children now, according to a new report from Cerulli Associates, because a significant amount of the $124 trillion in assets anticipated by the market intelligence organization to be transferred by 2048 will initially be transferred horizontally between spouses. 

The transfer, extensively documented by research institutes, pertains to the impending shift in wealth ownership over the next two decades as baby boomers bequeath their assets to Generation X, Millennials, and Generation Z heirs. The transition is anticipated to disproportionately benefit women, with an estimated $40 trillion transferring to widowed spouses. 

Of the anticipated $124 trillion, $105 trillion will be allocated to heirs and $18 trillion to charitable organizations. Cerulli reported that heirs are currently inheriting approximately $2.5 trillion each year and anticipates this amount will surpass $3 trillion by 2030 and exceed $4 trillion by around 2036, according to “The Cerulli Report — U.S. High-Net-Worth and Ultra-High-Net- Worth Markets 2024.”  

Cerulli projected that 79% of the $124 trillion in assets being transferred will originate from baby boomer households. Despite representing only 2% of households, high-net-worth and ultra-high-net-worth individuals are projected to account for more than half of the total wealth transferred in the next 25 years, amounting to $62 trillion, the report highlighted. 

Cerulli predicted that the total amount of asset transfers between spouses will reach $54 trillion during this period, with nearly $40 trillion of this amount going to bereaved women. This demographic shift underscores the increasing necessity for financial services that are designed for women, who are increasingly responsible for managing household wealth. 

For advisors, this means shifting the attention away from current, older male clients and onto their spouses (mostly female) and the next generation of their families. 

The wealthiest generation in the next 25 years will be millennials, with an estimated $46 trillion in inheritance. Nevertheless, Gen X will take the lead in the short term, as they will inherit $14 trillion over the next decade, compared to $8 trillion for millennials. Cerulli reported that Gen X households are already inheriting over $1 trillion annually. 

Chayce Horton, a senior analyst at Cerulli, is of the opinion that wealth managers’ capacity to establish robust relationships with newer generations is essential. “With $85 trillion flowing to Gen X and Millennial heirs, firms that adapt their services to meet the needs of these investors will thrive,” he said. 

Establishing relationships with clients’ families is increasingly becoming a primary focus. Approximately 90% of high-net-worth practices examined by Cerulli in 2024 identified family meetings and continuous contact as vital to their growth plan. These techniques not only help to preserve assets over generations, but they also address the financial preferences of women and younger investors. For example, they are frequently more interested in education, personal services, alternative investing, and philanthropy. 

“Ultimately, there are notable differences in service and product preferences among women and next-generation clients compared to current client demographics,” said Horton, “and as wealth moves, these differences are likely to shift market share in favor of firms that are best prepared to meet the needs of those recipients.”