Generation Z expects to inherit money and wealth, but their baby boomer parents don’t plan to leave anything behind

Millennial and Gen Z heirs are eagerly anticipating a “massive wealth transfer” of $90 trillion when they inherit their parents’ wealth, but many are in for a disappointment, with only a fifth of baby boomers expecting to leave anything behind.

Financial services company Northwestern Mutual recently surveyed more than 4,500 adults and found that few can count on a windfall of cash after the death of a parent.

Today, more than half of American wealth is owned by baby boomers, and most of that wealth is tied up in real estate as they hold off on downsizing.

Perhaps that’s why more than half of Gen Z and nearly 60% of Millennials said they value an inheritance to achieve financial security and a comfortable retirement.

However, those assessing their parents’ (or grandparents’) wealth and imagining a peaceful retirement are in for a huge shock: just over 20% of baby boomers expect to leave behind an inheritance.

It’s not that a generation has forgotten their young loved ones. In fact, 60% have a will — but their children and grandchildren are more likely to find funeral instructions in it than in cash or the family home.

That’s because more than half of boomers surveyed explicitly plan not to leave an inheritance. What’s more, only 11% of boomers said leaving something to their children is their primary financial goal.

“If you have money now, do good now – don’t wait until you die”

Research hasn’t explored why baby boomers don’t want to pass anything on to their offspring, but there is a growing group of people who want to die with nothing — essentially, they want to enjoy all their wealth while they live and die with $0 in their bank account.

Some people said Fortune that instead of leaving huge sums of money to the next generation, they allow their loved ones to spend the holidays while they are still alive and let them enjoy the joy that money brings.

“If you have money now, do good now — don’t wait until you’re dead,” Elena Nuñez Cooper, who plans to pay for her friend’s honeymoon and give the money to charity, said recently. Fortune.

Others admitted they were using their hard-earned money to enjoy life to the fullest, including trips to Mexico and the Glastonbury music festival – rather than burying it in a grave after decades of hard work.

“It’s such a shame to see people die with so much money in jobs they didn’t like or with people they didn’t like,” personal finance coach James Beckett reiterated. “They’re on autopilot, accumulating wealth without thinking about what it’s for.”

Plus, as the Northwestern Mutual report highlights, the cost of aging is only rising. In 2020, respondents said they needed $951,000 to retire comfortably — but today, that figure has risen to $1.46 million, far outpacing inflation.

While many baby boomers do not expect to pass anything on to the next generation, nearly half of them plan to cover health care costs in retirement.

So in reality, most of the Great Transfer of Wealth will likely go to hospitals and nursing homes.

Young people are now reaching out to their mom and dad’s bank for help anyway.

While most Gen Zers and Millennials likely will not benefit from the Great Wealth Transfer, a large portion of this generation is already benefiting from their inheritance while their parents are still alive.

Research shows that more than a third of young people planning to buy a home expect their parents or family to support them with the down payment in the form of a cash gift.

Meanwhile, other data shows that millennials were more likely than previous generations to tap into their parents’ savings to become homeowners.

Moreover, financial support for adult children is not limited to helping them acquire their own wealth.

According to the Pew Research Center, a third of millennials in their 30s still rely on their parents to fund their daily expenses and streaming subscriptions.

This story was originally published on Fortune.com