Americans expecting to inherit money from their parents or other relatives are overwhelmingly counting on those funds for their retirement, new polling shows. Among prospective heirs surveyed by LendingTree, 43 percent said they are counting on an inheritance or financial gift "a great deal" to help fund their retirement, while 38 percent said they are counting on it "somewhat." Together, that means 81 percent are relying on an expected inheritance to at least some degree. The findings come as older American homeowners are projected to pass down an enormous pool of wealth in the coming decades.
LendingTree estimates that around $17.2 trillion could be transferred between 2026 and 2045, averaging about $859 billion a year. But banking on inheritance comes with risks, experts said, as the amount and timing of any eventual windfall can be affected by longer lifespans, health and long-term care costs, market losses, taxes and changing family circumstances. The poll, conducted in July among 525 U.S. consumers younger than 65 who expect to receive an inheritance or financial gift, found that Americans who expect to inherit money are overwhelmingly factoring it into their later life plans.
More often than not, Americans are expecting to receive some financial benefit when their parents die. LendingTree found that 33 percent of Americans younger than 65 expect to receive an inheritance or financial gift in the future. That rises to 53 percent among people earning at least $100,000, 46 percent among parents with children under 18 and 43 percent among Gen Z adults.
But there's a gap between what younger Americans expect and what older generations intend to leave behind. Just 43 percent of Americans aged 65 and older said they plan to give an inheritance or financial gift, according to the study. Many prospective heirs also appear to be making plans without having firm details about the money they expect to receive.
Only 57 percent said they had clearly discussed the amount, timing or likelihood of an inheritance with the person they expect it from. Another 28 percent said the subject had been discussed only broadly, while 16 percent had not discussed it at all. The expectations come against the backdrop of a potentially enormous transfer of wealth.
LendingTree estimates that homeowners aged 65 and older could pass down approximately $17.2 trillion in the next almost 20 years. The projection is based on a model of older homeowners’ property values, broader household wealth and mortality rates, rather than money already guaranteed to individual heirs. The findings also come as Americans continue to struggle with the cost of living and preparing for retirement.
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