The Blubber

The 55.8 million Americans over 65, about 17% of the population, hold half of America's wealth — $96.4 trillion, according to the Federal Reserve.

In a 2011 research paper, Edward Wolff from New York University and Maury Gittleman from the US Bureau of Labor Statistics analyzed data from 1989 to 2007 to investigate whether a Great Wealth Transfer had indeed occurred. The study revealed that the percentage of households reporting an inheritance had actually decreased by 2.5 points during that period. While it was acknowledged that inheritances could slightly mitigate wealth inequality, especially for those with lower incomes who might receive accidental bequests, the bulk of inheritances followed predictable patterns: they primarily enriched the wealthy, with only minimal benefits trickling down to the majority of the boomer generation.

A 2019 study conducted by Federal Reserve researchers offered additional insights. It found that the top 1% of American families who reported receiving inheritances in the past three years received an average of $719,000, and those anticipating future inheritances expected around $941,000. In contrast, individuals in the bottom 50% of wealth distribution who received inheritances reported an average of $9,700, with expectations of $29,400 for future inheritances. Even for families within the 51% to 90% income range, the average inheritance amounted to $46,000, which, while not insignificant, was far from being transformative.

Data from the Department of Labor's consumer expenditure survey illustrated how spending by older households had increased by 34.5% since 1982, significantly outpacing the 16.5% increase observed for younger generations.