Gen Xers, the forgotten child of the ‘Great Wealth Transfer,’ are first in line to inherit $31 trillion from the rich and ultra-rich, a new report finds.

By 2033, 1.2 million individuals worldwide worth $5 million or more will pass more than $31 trillion to their heirs, according to a recent report from Wealth-X, a research and investment company. data for the world’s rich. Individuals worth $100 million or more – of which there are fewer than 40,000 worldwide – are expected to account for almost half of that wealth. And most of it goes to Generation X.

Over the past few years, millennials have emerged as the projected winners of the much-vaunted Great Wealth Transfer, in which older generations, mainly baby boomers, are expected to hand over tens of trillions of dollars in wealth. (By 2045, $84 to $90 trillion is expected to be transferred between generations in the U.S. alone.) In the next 20 years, the shift in assets will make people born between 1981 and 1996 the wealthiest generation in history, according to a 2024 report from Knight Frank, making millennials five times richer in 2030 than they were in the early 2020s.

But a new report from Wealth-X suggests that young people will have to wait a little longer. At least in the short term, the heirs to the fortunes of the rich and ultra-rich will actually be those aged 44 to 59. In North America alone, the amount of assets coming from wealthy donors will exceed $14 billion.

“Much is often made in the media of millennial and Gen Z heirs, but, in fact, Gen X will be first in line to inherit from their wealthy parents,” the report said. “Millennials and the younger Gen Z, right now, are more likely to receive amounts as grandchildren, which will often be less substantial.”

On balance, Gen X is perceived to be getting the short end of the financial stick. Gen Xers, also referred to as the “sandwich” generation—who must simultaneously provide financial security for themselves, their children, and their parents—are far less likely to feel confident in their ability to meet their retirement goals. pension compared to their younger and older relatives. , according to a report from Schroders.

In addition, unlike baby boomers, the vast majority of Gen Xers will rely on 401(k) plans, rather than pensions, after they retire, meaning they are more responsible for their savings than Generation A. post war.

But even though the new findings suggest that Gen Xers are expecting some wealth in the next decade, that inheritance may not be evenly distributed.

As of 2023, it took a fortune of $5 million to join the ranks of the top 1% in the U.S. — the minimum threshold for those who pass their fortunes on the Wealth-X report. Additionally, Gen X has the largest wealth gap of any current generation. While the top 25% of earners in the generation have $250,000 saved toward retirement, the bottom quarter has only $35,000 saved, according to a report from the National Institute for Retirement Security.

However, the massive transfer of resources coming from the aging wealthy elite will have major implications for wealth managers, philanthropies and other organizations that handle newly inherited money, Wealth-X reports. Gen X and their younger peers are more motivated by technological, environmental and social issues than previous generations of investors.

“Younger generations are very focused on charities and foundations,” D’Arcy Fellona, ​​customer success manager at Altrata, said in the report. “It doesn’t necessarily mean bigger donations, but there’s certainly a stronger commitment and an interest in wanting to get more involved in the work of the organizations and see their impact over time.”