69% of Millennials Say They Can’t Retire or Buy a House Without an Inheritance

The new average age of a first-time homebuyer climbed dramatically to 40 this year, meaning that older millennials, after years of scraping and saving, have finally achieved the American Dream. 

For those who have yet to manage the pathway to homeownership, the future may hold the key. Their baby boomer parents are slated to pass on $90 trillion dollars in the Great Wealth Transfer, which is poised to include assets ranging from homes to cold hard cash. 

Which is good, because according to a new survey done by Northwestern Mutual, nearly 7 out of 10 millennials are counting on that inheritance to plan their own futures.

Retirement out of reach

According to Northwestern Mutual’s findings, nearly one-third (31%) of U.S. adults anticipate leaving an inheritance or a financial gift/donation to a charitable organization—up from 26% in 2024.

The study also found that among those expecting to receive an inheritance, more than half (57%) say it is “critical” or “highly critical” to their long-term financial security. For Gen Z and millennials, it’s even higher—63% and 69%, respectively.

For the latter, it seems the money is necessary to fund the next stage of their lives. A recent Advisor Authority study from Nationwide Retirement Institute found that 58% of millennials believe they can only buy a home or save adequately for retirement—not both. Therefore, an inheritance may be the key to getting them over that financial hurdle. 

However, only 26% of millennials expect to receive an inheritance, down from 32% the year before. Why? Well, as Matthew R. Walsh, CFP and private wealth advisor with Continuum Wealth Partners, a Northwestern Mutual Private Client Group, explains, the priorities of the older generation have shifted. 

“While the core idea of leaving an inheritance remains—a way to support future generations—the methods and motivations behind it are evolving, shaped by taxes, family dynamics, and changing generational values," Walsh says.

Baby boomers holding on to their wealth

Currently, baby boomers are sitting on a staggering amount of housing wealth. According to Realtor.com® research, they own an estimated $18 trillion to $19 trillion worth of real estate across the U.S. 

While Northwestern Mutual’s survey found that 30% of boomers expect to leave an inheritance, a new report from Charles Schwab from early 2025 found that almost half of boomers (45%) confessed they wanted "to enjoy my money for myself while I'm still alive." Only 34% planned to preserve their fortune to pass on to the next generation. 

While that may seem cold, keep in mind that, as Walsh rightfully points out, family dynamics are changing. While some may not have heirs to leave their money to to begin with, others see preserving their legacy in a different way as more valuable. 

“Many individuals view charitable giving as an opportunity to make a meaningful impact with their legacy, reflecting a broader move towards social responsibility,” he explains. 

“As a result, the idea of designating significant portions of one's estate to charity is gaining traction, highlighting a focus on making a difference beyond just passing on family wealth.”

The importance of estate planning

For those millennials who hope to receive an inheritance to fund their next chapter, it is crucial to have important conversations as early as possible.

While 6 in 10 (60%) Americans who expect to leave an inheritance say they have had a conversation with their family about their plans, according to the research, 4 in 10 (39%) boomers admit they do not have a will.

Financial planning has become more crucial than ever before, and for those expecting an inheritance, working to ensure that the money is adequately squared away can ensure you collect as much as you’re hoping to take away. 

“Taxes have certainly put a twist on how inheritances are handled,” Walsh warns. “Nowadays, inheritance and estate taxes can often take a significant chunk out of what you leave behind, especially if thorough planning has not taken place.”

His advice is to enlist the help of tax professionals and financial advisors who can help ensure inheritors don’t “pay more in tax than they need to.” 

“Life insurance continues to be a significant estate planning tool,” Walsh adds. “The beneficiary covered by a life insurance policy generally receives the death benefit tax free.”