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Sorry, any children of Boomers who may be hoping for a big inheritance someday. We’re spending your legacy.
This is the finding of a recent Schwab survey of more than 1,000 high net worth Americans that highlighted a generational divide in intentions for passing on wealth. Many Boomers, myself included, are part of the 79% who plan to enjoy their money during their lifetimes—and we’re okay with that.
After decades of working hard, saving, and making sacrifices, the idea of spending intentionally to enjoy what we’ve built feels like the ultimate reward. Many of my Boomer clients share this perspective, wanting to make memories and savor experiences as they live fully in their retirement years.
This mindset also may explain why only 19% of Boomers surveyed plan to pass along a portion of their wealth during their lifetime, compared to nearly half of Millennials (49%) and Gen Xers (52%). It is not about being stingy or disinterested in the next generation. For Boomers, it’s about using what we’ve earned to create meaning in our own lives, trusting that whatever remains will still make an impact after we’re gone. Millennials and Gen Xers are more hands-on with their giving. They’re focused on seeing the immediate impact of their wealth, whether it’s funding their children’s education, supporting causes they’re passionate about, or helping loved ones achieve dreams.
Interestingly, this difference extends to the idea of attaching stipulations or restrictions to giving. Only 7% of Boomers do this, compared to a striking 43% of Millennials. Again, I see this with my clients. Boomers tend to give without strings because their gifting typically happens at the end of life, through inheritance, and there’s a sense of trust in the recipients. Millennials, who are younger and more likely to give during their lifetime, often want to ensure their wealth aligns with their values and intentions.
This generational divide also offers a lesson for charities and nonprofits. Boomers remain a key source of planned giving through wills and estates, but Millennials and Gen Xers are likely to respond to urgent needs. These younger donors tend to want to see their dollars making a difference right now.
Another reason Boomers focus on enjoying their wealth, I think, is tied to the realization that our time on this planet is growing shorter. Many Boomers grew up in a world that valued financial security above all else. We were taught to delay gratification, to plan for rainy days, and to put others first. But once retirement hits, that mindset often shifts. We realize that the future we’ve planned for is here—and we’re finally giving ourselves permission to enjoy it.
Millennials and Gen Xers, shaped by a fast-paced and interconnected world, approach wealth differently. For them, money is a tool for connection and purpose. They’re focused on creating memories, helping others, and making an impact now rather than later. The stipulations they attach to their gifts, meant to support their values, are a reflection of their desire to be active participants in their legacy, rather than leaving it to chance.
Should the children of Boomers be worried that we’ll leave them with nothing? Not necessarily. We may talk a good game about spending your inheritance. Yet for most of us, years of frugal habits won’t transform overnight. Sure, we’ll splurge here and there, but the idea of actually burning through everything we have? That’s a stretch. While we may joke about spending it down to the last penny, chances are there will still be plenty left for you when all is said and done. We just don’t necessarily want to admit it.
Related: Empower Your Inner Board: Make Smarter Money Decisions