|The economy has not been friendly to younger generations.
From the Great Recession to the pandemic to an impossible housing market, many millennials and Gen Zers are in a tough economic spot.
But there’s a lifeline down the road for some people, even if they don’t like to think about it: A healthy inheritance.
No one wants to consider a relative passing away, but our elders undeniably are sitting on a lot of wealth. Americans over 65 hold roughly $96.4 trillion, according to the Federal Reserve.
Such a substantial transfer of wealth seems like it would have a life-altering effect on a large swath of the population.
However, the chances of that money trickling down to the people banking on it aren’t high, writes Ann C. Logue for Insider. In reality, most of that money will be spent on long-term care and end-of-life costs for the people holding it.
Only the wealthiest 1% of Americans said they received an inheritance in the six figures, according to a 2019 study by the Fed. Meanwhile, people in the bottom 50% of the wealth-distribution scale received an average inheritance of $9,700. For families in the 51% to 90% range, the average inheritance was $46,000.
And while that’s better than nothing, it also might be less than what people facing mounting student debt and an increasingly expensive housing market were hoping for.