The Great Wealth Shift, also known as the Great Transfer of Wealth, is a phenomenon that has been taking place over the past few decades. It refers to the significant transfer of wealth from one generation to the next, a process that is expected to accelerate in the coming years. According to a report by CNBC, it is estimated that approximately $68 trillion will be transferred from baby boomers to their heirs by 2030.
This transfer of wealth is expected to have a significant impact on the economy and society as a whole. It will affect everything from family dynamics to philanthropy to investment trends. Here are some of the key ways in which the Great Wealth Shift is expected to impact the world.
Impact on Family Dynamics
The transfer of wealth can lead to a shift in power dynamics within families. Heirs who receive significant wealth may become more independent and less reliant on their parents or grandparents. This can cause tension within families, and there may be disagreements over how the wealth should be managed and distributed.
On the other hand, the transfer of wealth can also be an opportunity to strengthen family ties. Many families use the transfer of wealth as an opportunity to bring the family together and educate younger generations about the family’s values and mission.
Impact on Philanthropy
The Great Wealth Shift is expected to lead to a significant increase in charitable giving. Many of the baby boomers who are passing on their wealth are also passionate about philanthropy, and they are likely to pass on those values to their heirs. According to a report by UBS, 85% of millennials say they plan to donate to charity during their lifetimes, and they are more likely to give to causes that align with their values.
The Great Wealth Shift is also expected to lead to a shift in the types of causes that receive funding. Many baby boomers have traditionally given to causes such as education, healthcare, and the arts. However, younger generations may be more interested in causes related to social justice, the environment, and technology.
Impact on Investment Trends
The Great Wealth Shift is also expected to have an impact on investment trends. As baby boomers pass on their wealth to their heirs, there may be a shift in investment strategy. Younger generations may be more interested in socially responsible investing or investing in start-ups and technology companies.
The Great Wealth Shift may also lead to a shift in the types of financial institutions that are trusted by investors. Many younger investors may be more interested in working with smaller, more agile firms that align with their values.
The Great Wealth Shift represents a significant transfer of wealth from one generation to the next. It is expected to have a significant impact on family dynamics, philanthropy, and investment trends. As the transfer of wealth accelerates in the coming years, it will be interesting to see how these trends play out and what the long-term implications will be for society as a whole.