Despite a massive transfer of wealth from baby boomers to younger generations, many will receive far less than expected due to the overwhelming expense of healthcare.
Healthcare Costs Draining Boomer Wealth
A CNBC analysis reveals that single individuals turning 65 in 2023 will need approximately $157,500 in savings to cover healthcare expenses in retirement. For couples, that figure rises to $315,000.
Savings Levels Fall Short
According to a Transamerica Center for Retirement Studies survey, the median retirement savings for baby boomers is $289,000, while Gen-Xers have $82,000 and millennials have $49,000.
Wealth Transfer Concentrated
A study by Cerulli Associates indicates that 42% of the wealth transfer will originate from high-net-worth and ultra-high-net-worth households, representing only 1.5% of all households.
Concerns for Financial Future
Boomers are increasingly aware of the financial implications of healthcare costs. A 2022 study found that 42% of the wealth transfer will come from high-net-worth and ultra-high-net-worth households, who together make up only 1.5% of all households.
