MetLife Study Estimates Baby Boomers Will Inherit 8.4 Trillion

MetLife conducted a nationwide study on inheritance and wealth transfers to Baby Boomers. The study revealed that, based on data from 2007, Boomers will inherit $8.4 trillion, with a median figure of $64,000 for each individual Boomer. Boomers have already received $2.4 trillion of the total $8.4 trillion, leaving $6 trillion worth of asset transfers anticipated for the future.

According to the survey, the wealthiest Boomer households will receive an average of $1.5 million, though the median amount is $335,000. The least wealthy households will receive an average of $27,000, with a median of $8,000. When the study calculated in inter vivos gifts to Boomers, the $8.4 trillion of asset transfers increased to $11.6 trillion.

However, because the $8.4 trillion figure is based on pre-recession data, the accuracy of these figures is questionable. The study estimates that two-thirds of Boomers will inherit during their life, but it urges Boomers to not base future plans around these uncertain inheritances:

Regardless of the anticipated amount, any prospective inheritance is uncertain. Parents or grandparents who expect to leave a bequest may revise their plans based on fluctuations in their asset values. Or they may exhaust their wealth as a result of medical costs or long lifespans. In short, Boomer households should not count on an anticipated inheritance to eliminate the need for increased retirement saving.

The MetLife Study of Inheritance and Wealth Transfer to Baby Boomers, Center for Retirement Research at Boston College for the MetLife Mature Market Institute (2010). See MetLife Mature Market Institute Study Estimates Boomers’ Inheritance At 8.4 Trillion, Business Wire, Dec. 14, 2010.