Tony Kaye, senior personal finance writer with Vanguard, penned an interesting article over the weekend on the massive inter-generational transfer of wealth that will occur as the baby boomer generation dies and passes its wealth to its heirs.
In a nutshell:
- The next 20 to 30 years will see the biggest intergenerational wealth handover in history.
- At least $3.5 trillion of assets will be inherited in Australia alone, including family homes, investment properties and superannuation money.
- Residential real estate and superannuation, which combined make up more than three-quarters of total household assets, are the largest components of most inheritances.
- Inheritances will increase inequalities between people with richer or poorer parents.
