U.S. Money
A clerk poses with US dollar banknotes on May 2, 2024. ADEK BERRY/AFP via Getty Images

It would seem that the great generational divide between the behavior of Gen Xers and Millennials vis-a-vis the Boomers is becoming wider by the minute, and perhaps, such could no longer be reduced. A latest study showed that even when it comes to successional rights, they differ in their opinions and preferences.

Charles Schwab, a financial services company, surveyed wealthy Americans about the manner that they would be leaving their assets to their heirs, and the result showed a great disparity on the subject.

The survey found that Baby boomers would prefer that the transfer of their wealth to their heirs happen after they die, while millennials and Gen Xers would opt to distribute their wealth to their heirs during their lifetime.

About more than 1,000 Americans responded to the survey conducted by Charles Schwab, which was released in December. Respondents had at least $1 million in investable assets.

A Washington Post analysis noted that around two-fifths of Americans eventually receive an inheritance. However, inherited wealth does not peak until 70 years old and many could actually use the inherited money before they reach that ripe age.

Monied Gen Xers and millennials were also twice as likely to agree with baby boomers on the notion that they want the next generation to enjoy their money while they are still living.

USA Today, citing certified financial planner Michelle Crumm in Michigan, said that it is the age group of those in their 20's and 30's who really do need their inheritance from their parents or any other ascendant. She emphasized that it is the two age groups "are the ones that have the highest needs and the lowest ability to have any money coming in."

An earlier study from Northwestern Mutual revealed the high number of younger Americans, expecting to receive an inheritance from their parents, but the number does not coincide with those older Americans who are planning to leave their wealth to the young ones.

The Northwestern study showed that among the Gen Xers, 38% expect to inherit, while 32% does among millennials. However, when it comes to boomers who plan to leave one, the numbers dropped to only 22%.

Crumm also shared her own experience with a 60-year-old client who refused to spend her money. The planner said that she finds it hard to convince her to leave money to her children while they are still young.

"It's just the reluctance to spend money," Crumm noted.

Aside from the two mentioned surveys, another survey that shows a similar result was the 2024 Planning & Progress Study, still from Northwestern Mutual. In this study, 81% of millennials and 65% of Gen X believe that leaving their wealth to the younger generation was either the "single most important financial goal" or "very important." However, out of the boomers, only 46% shared the same belief.