Dec 12, 2025
The world’s wealth is about to change hands on a massive scale. Today, baby boomers control more than half of America’s wealth — roughly $78.5 trillion, or 51.8% of the nation’s total (1).
They also make up nearly half of the globe’s ultra-wealthy, defined as individuals worth at least $30 million, according to a recent ALTRATA report (2).
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But that is about to change. Over the next two decades, trillions of dollars will be turned over to their heirs in a shift that is being called "The Great Wealth Transfer."
ALTRATA projects that, by 2040, millennials and Gen Z will make up more than a third of the world’s ultra-wealthy, up from just 8% today. Generation X will hold the largest share at 45%, while boomers and the silent generation will shrink from two-thirds of the pie to just a fifth.
The sheer size of this transfer is staggering. Between $68 trillion and $84 trillion is expected to pass to spouses, children and charities in the U.S. alone, according to estimates cited by the World Economic Forum. To put that in perspective, that’s roughly three times the size of the entire U.S. economy in 2023 (3).
How young people accumulate wealth
Inheritance is the largest single driver of this wealth transfer, and in many cases, it’s arriving earlier than before. The increased use of trusts means heirs are gaining access to wealth without waiting for parents to pass away, ALTRATA notes.
Surveys also show younger generations are counting on it: 55% of millennials and 41% of Gen Z expect to inherit money or assets within the next five years. (4)
However, younger generations are also building wealth in different industries than their parents. The top industries are (5):
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- Technology and social media: Nearly 9% of the next generation’s ultra-wealthy have made their money in tech — double the share of baby boomers.
- Hospitality and entertainment: About 15% of younger ultra-wealthy derive wealth from these industries, compared to less than 5% of older cohorts.
- Finance and investing: Still the biggest sector overall, but Gen Z and millennials are less concentrated here — only about 20% versus higher rates among older generations. They also invest differently, with surveys showing younger investors lean toward private equity, direct investments and sustainable assets.
- Real estate: While consistent across generations, real estate will be a major focus as millennials finally gain the resources to buy homes. Inherited property will add both supply and demand to the housing market.
From luxury goods to charitable giving, which are the spending and investing priorities of younger people, this wealth transfer has the potential to reshape entire industries.
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What does this mean for you?
While the vast majority of us are not going to inherit millions, there are some lessons and opportunities for anyone looking to build wealth in a changing economy.
Here are a few things worth considering:
Pay attention to high-growth industries
Tech, renewable energy, digital platforms and hospitality are creating new millionaires. While not everyone can launch a startup, ordinary investors can gain exposure through stock markets, ETFs, or even small business opportunities in these spaces.
Invest with sustainability in mind
Younger investors are already driving demand for sustainable and socially responsible assets. Aligning your portfolio with these trends could position you for long-term growth. Consider paying close attention to emerging companies and tech in this field.
Prepare for inheritance responsibly
If you do expect to inherit, have a plan — whether that’s paying off debt, buying property or investing for the future. Treat it as a tool to accelerate your goals, not an excuse to spend freely. Start learning now and talk to your parents about their strategies.
While you may choose a different path, understanding the steps they've taken and why can set you up for success.
Focus on what you can control
Even without a windfall, there are steps you can take to improve your financial future. Start by building financial literacy, creating an emergency fund in a savings account and opening a 401(k) or IRA for retirement.
Invest early, invest often, and diversify your portfolio to limit risk. These are the most reliable ways to grow wealth over time.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
SmartAsset (1); ALTRATA (2); World Economic Forum (3); Citizens (4); CNBC (5)
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
