Recent Study Reveals Millennials Anticipate Significant Inheritances

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Young Australians may be vastly overestimating the amount of inheritance they expect to receive.

A new survey from wealth management firm Colonial First State (CFS) found that younger Australians between the ages of 18 and 29 anticipate an inheritance of around $525,000.

The survey, which spoke to 2,250 Australians over the age of 18, found that young people’s expectations were in line with those aged 40 to 49, who expected to inherit around $547,667.

A man in a suit on a footpath shouting at a crowd of other people standing on grass.

The survey found that more younger people are expecting an inheritance, as housing affordability means many struggle to get onto the property market. Source: AAP / Dan Himbrechts

However, the sum is nearly double the amount that older generations expect to receive, with the 65 to 74 age bracket anticipating around $167,624.

With trillions of dollars expected to be transferred via intergenerational wealth over the coming years, the data on who will receive that inheritance shows that younger Australians’ expectations may not match up to the reality.

Where will ‘the great wealth transfer’ go?

Economists call this ‘the great wealth transfer’.

However, younger generations aren’t always the beneficiaries. Melbourne University’s HILDA survey of household, income and labour dynamics found that most recipients of inherited wealth are over 55, receiving an average inheritance of $275,619.

A pie chart showing the wealthiest 2% of Baby Boomers hold 18 per cent of the group's assets

Baby boomers hold $4.9 trillion in assets according to CoreData analysis. Source: SBS News

“In the past, inheritance was a way of redistributing wealth, but increasingly wealth is being concentrated in smaller and smaller groups, so effectively this is going to flow to a very small minority of people,” he said.

Grudnoff said it’s true that people tend to overestimate their inheritance, making guesses “based on hope and not reality”.

Adjusting inheritance expectations

While there is no official data to confirm just how much wealth is being passed down, the Productivity Commission estimates the average inheritance is around $125,000.

The HILDA survey also found that inheritances tend to be smaller for younger generations. It estimated that only 1.5 per cent of Australians between the ages of 25 and 34 received an inheritance, at an average amount of $50,508.

“Inheritances are not going to be that large for most people,” Grudnoff said.

“It might help you in your retirement, but I don’t think it’s going to radically change whether or not you can buy a house or help you through most of your life.”

The CFS survey also found 82 per cent intended to leave an inheritance but only 38 per cent have a will.

CFS head of technical services Craig Day said it’s important that expectations are discussed openly among family members.

“By having these conversations early, families can ensure that everyone is on the same page and can make informed decisions that align with their values and goals,” he said.

“It’s not just about passing on wealth — it’s about passing on clarity. Families need to talk about their intentions, their needs, and their plans.”