Keeping Their Money: 24 Reasons Boomers Are Refusing To Pass Down Their Fortune
Inheritance used to feel like a sure thing. Parents worked, saved, and left something behind. Maybe it’s a house, an investment account, or even just enough to clear a few bills. After all, Boomers are one of the wealthiest generations in history.
Turns out, that’s not happening. A lot of Boomers aren’t planning to leave much behind. Some aren’t leaving anything at all.
A recent report by Charles Schwab found that nearly half of Boomers (45%) said they plan to spend their money on themselves. Retirement isn’t cheap, and many would rather enjoy what they’ve built instead of passing it down.
Boomers currently hold $83.5 trillion in assets, according to the UBS Global Wealth Report 2024. That sounds like a massive transfer waiting to happen, but reality tells a different story.
So what’s really going on? We’re breaking down the key reasons Boomers are holding onto their wealth, spending it differently, or choosing to pass down something other than money.
Table of Contents
Increased Life Expectancy
Boomers are living longer than any generation before them, and that comes with a price. Decades ago, people planned for retirement to last maybe 10 or 15 years.
Now? Many Boomers are looking at 25 or even 30 years of post-work life. That means stretching their money further, making sure they don’t outlive their savings, and holding onto assets they might have otherwise passed down.
It’s not just about covering basic expenses, it’s about making sure they have enough for potential healthcare costs, unexpected emergencies, and a lifestyle they worked hard to build.
Longevity is a blessing, but financially, it changes everything.
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Rising Healthcare Costs
Healthcare isn’t cheap, and Boomers are feeling the pinch. In 2024, Fidelity estimated that the typical 65-year-old could expect to spend $165,000 on health care in retirement, not accounting for long-term care, an expense that 70% of adults who survive to age 65 are likely to need.
Insurance helps, but it doesn’t cover everything. Prescription drugs, dental care, and specialized treatments all eat into savings. Some Boomers are setting aside significant portions of their wealth just to make sure they’re covered for any health surprises down the road.
The result? Less money left over to pass along, and more focus on self-preservation.
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Long-Term Care Expenses
Aging in place sounds nice, but it’s not always realistic. Many Boomers are facing the reality that they may need professional care at some point, including home health aides, assisted living, or full-time nursing care.
These services are expensive, and most aren’t fully covered by Medicare. To avoid burdening their children, many Boomers are keeping their money close, preparing for the possibility of long-term care instead of earmarking funds for inheritance.
The uncertainty of what’s ahead makes them hesitant to give away assets they might need later.
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Underfunded Retirement Plans
Not every Boomer planned perfectly for retirement. Many assumed pensions and Social Security would be enough, only to realize later that the math didn’t quite work out.
Others were hit by market downturns, job losses, or unexpected financial setbacks. Now, many are playing catch-up, using their remaining years to make up for gaps in savings. This means holding onto their money rather than passing it down early.
They aren’t being selfish, they’re being practical, making sure they don’t run out of funds before they run out of years.
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High Levels of Debt
Debt isn’t just a Millennial problem. Boomers are carrying more debt into retirement than previous generations, and it’s cutting into what they can leave behind.
Mortgages, credit cards, even lingering student loans (sometimes their own, sometimes their kids’) are eating up a big chunk of their finances. Instead of planning inheritance strategies, many Boomers are focused on simply paying off what they owe.
The idea of passing down wealth sounds nice, but for some, just staying financially afloat is the bigger priority.
The Impact of Inflation
Everything costs more than it used to, and Boomers are feeling it. The price of groceries, gas, utilities, everyday expenses are rising, forcing them to dip into their savings faster than they planned.
For those on fixed incomes, inflation isn’t just an inconvenience, it’s a threat to their long-term financial security. Rather than passing down assets, many are holding onto what they have, ensuring they can keep up with the cost of living without relying on their children for support.
The idea of inheritance takes a backseat when simply maintaining financial stability becomes the focus.
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Supporting Adult Children
Boomers didn’t just raise their kids, they’re still financially helping them. Many Boomers are still acting as a financial safety net for their adult children by assisting with student loan payments, helping with a down payment on a house, or covering unexpected expenses.
While they may not be handing over a lump-sum inheritance, they’re providing ongoing support in a different way. This kind of financial assistance adds up, often leaving little left to pass down formally.
Instead of waiting until after they’re gone to give money to their kids, many are opting to help them while they’re still around to see it.
Supporting Grandchildren
Boomers didn’t expect to be raising kids again in retirement, but life has a way of throwing surprises. Some have stepped in to help with daycare costs, education, or even full-time guardianship.
That money has to come from somewhere, and often, it’s their retirement savings. Raising a child is expensive the first time around, doing it again on a fixed income makes it even harder to set money aside for inheritance.
Many feel a strong duty to provide, even if it means using up what they once planned to pass down. Grandkids bring a lot of joy, but they also bring unexpected bills that can shrink a financial legacy.
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Divorce and Family Dynamics
Splitting assets in divorce means there’s less to go around, and Boomers have gone through plenty of them. Many had to divide homes, retirement accounts, and investments, cutting their wealth in half or more.
On top of that, second marriages and blended families complicate inheritance plans. Some Boomers have stepchildren they want to provide for, while others worry about fights breaking out once they’re gone.
The easier path? Spend it instead of leaving it behind for others to argue over. The money that could’ve been passed down often gets absorbed into new households, legal fees, and keeping financial peace in a complicated family structure.
Personal Fulfillment
Boomers grew up watching their parents scrimp, save, and then pass away before really enjoying their money. Many decided they didn’t want to follow that script. Instead of leaving behind a pile of cash, they’re spending on bucket list trips, hobbies, and experiences.
The idea is simple: they worked hard, so why not enjoy it? Fancy vacations, RV life, or even just more nights out at restaurants all add up. Some still plan to leave something for their kids, but not at the cost of sacrificing the retirement they dreamed about.
For many, financial security is about making the most of life today, not just preserving wealth for tomorrow.
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Social Security Uncertainty
Nobody knows what Social Security will look like in 10 or 20 years, but Boomers aren’t taking chances. Many worry that benefits will shrink or that cost-of-living adjustments won’t keep up with inflation.
That fear leads to holding onto cash instead of passing it down early or giving generous gifts. Some even keep working just to pad their savings further, knowing they might need it later.
The idea of running out of money keeps them cautious, and caution means hanging onto assets for as long as possible. Inheritance? That becomes secondary when there’s uncertainty about future income.
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Higher Cost of Living
Everything costs more than it used to, and Boomers feel it. Housing, groceries, utilities, prices climb, and retirement dollars don’t stretch as far. Even those who thought they had enough saved find themselves adjusting budgets to keep up.
For some, that means downsizing or cutting back, but for others, it means tapping into money that was originally set aside for heirs. When daily expenses require more cash, inheritance plans get pushed to the back burner.
Retirement isn’t as cheap as expected, and that reality forces tough choices about how money is used.
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Market Volatility
Boomers have lived through multiple recessions, stock market crashes, and housing bubbles. Those experiences left a lasting impression, making many cautious about relying too much on investments.
Some had their portfolios wiped out in 2008 and had to rebuild. Others took big hits when tech stocks crashed or when inflation shook up retirement plans. These ups and downs make it tough to predict how much money will actually be left over.
Many Boomers keep a tight grip on their assets, knowing that a market downturn could change their financial situation overnight. That means less passing down and more holding onto wealth for stability.
Desire for Independence
Nobody wants to feel like a burden, especially not Boomers who spent decades building their careers and taking care of their families. Many want to maintain financial control for as long as possible, which means keeping assets instead of gifting them early.
This mindset isn’t about selfishness, it’s about security. They watched their own parents rely on pensions or family support, and they don’t want to be in that position. Holding onto their wealth allows them to make decisions on their own terms, even if it means their kids inherit less.
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Increased Taxes
Estate taxes, capital gains taxes, property taxes, governments always find a way to take a cut. Boomers who have built significant wealth worry about how much will actually reach their heirs. Selling assets triggers tax bills, leaving less to pass down.
Some choose to spend more in retirement instead of handing over a big chunk to the IRS. Others look into trusts or other tax-saving strategies, but those come with their own complexities.
The bottom line is that taxes make inheritance planning tricky, and for many, spending their wealth seems like the simpler option.
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Legacy Concerns
Not all wealth is measured in dollars. Many Boomers believe their true legacy lies in the experiences they create, the values they instill, and the memories they leave behind.
Instead of passing down money, they invest in family trips, educational opportunities, or meaningful causes. Some even prefer to give gifts while they’re alive, seeing their kids benefit firsthand instead of waiting until after they’re gone.
This shift in thinking changes the way money flows through generations. The goal isn’t just to leave something behind, it’s to make an impact while they can still enjoy it.
Charitable Giving
Some Boomers have decided that their wealth can do more good outside the family than inside it. Charities, foundations, and scholarship funds are getting slices of money that once might have gone to heirs.
This isn’t just about generosity, it’s also about control. Many would rather see their money make an impact while they’re alive instead of watching it be mismanaged later. Some have set up trusts, while others give directly, knowing exactly where their dollars are going.
The idea of legacy isn’t always tied to inheritance. Sometimes, it’s about leaving behind something bigger than just family wealth.
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Financial Mismanagement
Not every Boomer made great financial decisions. Some took bad investment advice, bought too much house, or trusted the wrong people. Others spent decades earning well but never saved properly.
When retirement finally hit, they realized there wasn’t much left. For those who did build wealth, plenty saw it shrink due to bad stock picks, failed businesses, or overspending. The money that should’ve lasted another generation was gone before they even stopped working.
Without strong financial discipline, even large fortunes disappear faster than expected, leaving little behind for heirs.
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Political Concerns
Boomers have seen policy shifts wipe out retirement savings, change tax laws, and make long-term financial planning unpredictable. Some worry that government decisions could take a bigger bite out of their wealth than expected.
This uncertainty leads many to hold onto assets longer or restructure their plans. Instead of passing money down early, they wait to see how things unfold. Some even shift investments into hard assets, thinking cash is too risky.
Regardless of political beliefs, many have learned to be cautious when the rules seem to change overnight.
Economic Downturns
Boomers lived through recessions that crushed entire industries and wiped out savings overnight. Many had planned for a comfortable retirement, only to watch their investments take massive hits at the worst possible time.
The housing crash, dot-com bust, and market volatility left scars that still shape financial decisions. Holding onto wealth feels safer than assuming there will always be something left over.
The fear of another downturn makes many hesitate before giving money away too soon. Some would rather keep a buffer than risk running low if things take another bad turn.
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Emotional Attachments to Assets
Money isn’t the only thing that gets passed down. Family homes, vacation properties, and prized possessions all carry memories, making them harder to part with. Some Boomers hold onto real estate longer than necessary, thinking of it as an inheritance in itself.
The problem? Maintaining those properties costs money, and sometimes, heirs don’t even want them. Sentimental value keeps assets locked up, even when selling might make more sense.
The longer they hold on, the more upkeep drains their financial reserves, leaving less to distribute later.
Concerns Over Heir Conflicts
No one wants their kids fighting over money, but it happens all the time. Some Boomers try to avoid that drama by keeping their plans vague or delaying major decisions.
Others spend their wealth instead, figuring it’s easier than leaving behind something that could tear the family apart. Estate planning gets messy when multiple heirs are involved, especially in blended families.
The fear of creating resentment or lifelong rifts leads some to shrink inheritance plans altogether. If there’s nothing to fight over, there’s nothing to ruin relationships.
Fear of Running Out of Money
Boomers might seem financially comfortable, but deep down, many worry about making it last. Life expectancy keeps rising, and with it, the need for long-term financial security.
Even those with millions in assets aren’t immune to this fear. Healthcare costs, inflation, and market instability make careful spending a priority. Holding onto wealth isn’t just about control, it’s about survival.
Watching parents or peers outlive their savings left an impression, making Boomers more protective of what they have. Giving too much away too soon just doesn’t feel like a smart move.
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Generational Differences in Values
Boomers and their kids don’t always see eye to eye on money. Many worked decades to build wealth, only to watch younger generations prioritize experiences over ownership, or minimalism over material wealth.
Some worry that an inheritance will be spent too quickly, rather than invested wisely. Instead of passing down large sums, they put conditions in place or delay transfers. Others believe their children should earn their own financial success, just like they did.
This generational divide shapes how wealth is distributed, often leading to smaller or delayed inheritances.
Rethinking the ‘Great Wealth Transfer’
Boomers aren’t passing down as much as expected, and it’s not just because they don’t want to. Rising costs, longer retirements, and shifting priorities have changed the game. Many are choosing to spend, give, or hold onto their wealth instead of leaving behind a big inheritance.
For younger generations, this means adjusting expectations and focusing on building financial security without relying on a windfall. The idea of wealth transfer isn’t dead, it just looks different than before.
The smartest move? Take control of your own financial future instead of waiting for money that may never come.
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