Generation X, long referred to as America’s “forgotten generation,” is about to step into the spotlight. Over the next decade, Americans aged 45-60 are projected to inherit an extraordinary $1.4 trillion every year, on average, according to a recent study by Cerulli Associates, a Boston-based research firm. This wealth transfer—not just massive in scale but also unprecedented in speed—places Gen X at the epicenter of the long-anticipated “Great Wealth Transfer.”
For decades, Gen Xers, born between 1965 and 1980, have seen their economic story overshadowed by the spending power of baby boomers and the tech-driven optimism surrounding millennials. And Gen X could be seen as unluck, says Chayce Horton, senior analyst with Cerulli: ““Gen X households have faced much more financial and career upheaval early in their financial journeys than had been expected,” he says, pointing out that no generation lost a greater percentage of its net worth in the Great Financial Crisis between 2007 and 2010 than Gen X households, seeing a 38% decline in net worth, from $63,000 to $39,000. “With stunted market growth from 2000–2010, many Gen X households lack a sense of comfort with their future retirement,” Horton says.
Now, this “sandwich generation,” balancing the demands of dependent children and aging parents, is preparing to receive the largest immediate inheritance in U.S. history, setting them up for newfound financial security, influence, and responsibility. Still, while Gen X will receive the greatest short-term windfall, millennials stand to inherit more overall in the longer term, with roughly $39 trillion flowing to Gen X and $45.6 trillion flowing to the younger cohort over the next 25 years cumulatively.
What is the Great Wealth Transfer?
As covered extensively in the pages of Fortune, the “great wealth transfer” refers to the coming flood of wealth due to be inherited from the aging of the baby boomers, who were at their peak the largest living generation in the history of the world (millennials hold the title as of 2020, while Gen Z overtook boomers’ numbers in the workforce as of 2023).
The term’s origin is difficult to pinpoint, as several financial advisors began to see this tidal wave coming from far off starting in the late 1990s and early 2000s, from which it spread to economics and then the financial media. The boomers are also, as Fortune has reported, the wealthiest generation ever, with a lot of wealth due to be transferred.
UBS Global Wealth Management’s annual wealth report keeps tabs on the transfer and forecast that as of 2024, more than $83 trillion will change hands within the next 20 to 25 years. The U.S. will experience the largest transfer of them all, over $29 trillion.
Cerulli sees Gen X as the primary short-term beneficiary mainly because of demographic timing. Simply put, at roughly 45 to 60 years old, they’re next in line and typically named as primary beneficiaries in boomers’ wills. Experts warn that the distribution of inheritances will be uneven. Wealth concentration among the ultra-rich means some Gen Xers will receive life-changing sums, while others may see little or nothing due to soaring healthcare costs and uneven asset distribution.
Wealth, society, and the ‘Gen X economy’
Industry experts believe the influx will ripple across broader economic life. With their buying power projected to soar from $15.2 trillion to $23 trillion by 2035, Gen X is set to drive U.S. markets and shape consumer trends for the next decade.
Some analysts warn that as the largest wealth shift in history unfolds, it could exacerbate inequality both within and among generations unless supported by deliberate planning and financial literacy initiatives.
For Gen X, the next 10 years will be transformative. Once overshadowed by boomers and millennials, this “forgotten generation” is on the cusp of the largest short-term wealth influx America has ever seen. Whether this inheritance wave becomes a springboard to prosperity or a source of new challenges will depend on how the generation redefines its financial legacy.
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.
