Just the Facts
Boomers Hold Half of the Nation’s Wealth
An intergenerational transfer of wealth is in motion in America—and it will dwarf any in the past. In 1989, total family wealth in the U.S. was about $38 trillion, adjusted for inflation. By 2022, that wealth had more than tripled, reaching $140 trillion. Of the $84 trillion projected to be passed down to Millennial and Generation X heirs through 2045, $16 trillion will be transferred within the next decade.
- $14.2T Millennials
- $47.8T Generation X
- $18.1T The Silent Generation
- $78.3T Baby Boomers
Note: The total amount accounts for liabilities, but the individual asset categories do not, nor do they add up to the $140 trillion total. Total assets when excluding liabilities is $158 trillion.
Annuity Sales
In the first 9 months of 2023, total annuity sales increased 21% to $270.6 billion.
Source: LIMRA, U.S. Individual Annuity Sales Survey, preliminary results
‘Peak 65’ Worries
Advisers expressed concerns they cannot help clients have enough to live on as the country nears “peak 65” retirement in 2024, when more Americans will reach retirement age than in any previous year.
59% of the investment advisers who were surveyed reported allocating a portion of client portfolios to annuities both for purposes of a regular “paycheck” in retirement and as a substitute for fixed income. But almost 20% of the advisers said they are skeptical of the solution.
Source: RetireOne and Allianz, 2023 RIA [Registered Investment Adviser] Protected Accumulation and Retirement Income Survey