The Baby Boomers are hitting retirement age at an even greater rate than many people realize. Did you know that every single day over 10,000 people from this generation turn 65 years of age? That’s an average, of course, but it still shows just how quickly they’re hitting some very important milestones.
From an estate planning perspective, this is important for two reasons. First off, Baby Boomers themselves need to begin doing their estate planning. Far too many of them have no plan in place. Retirement is often something that makes people think about estate planning in a new way, though, even if they have been putting it off.
The second reason this matters so much is because the wealth held by the Baby Boomers is tremendous. They now have to pass it down to the next generation, and the amount that will move from parents to children is so vast that it’s being called the “Great Wealth Transfer.”
How much do Baby Boomers have? That part is debated. Low estimates run as far down as $15 trillion. Higher estimates are more in the range of $68 trillion. Odds are an exact figure will never be recorded, as this whole process will take 20 or 30 years to complete, but the reality is that it’s an unprecedented amount of wealth either way.
With so much money in the system, Baby Boomers simply cannot afford to make any mistakes. They need to take stock of what they own, consider how they want to leave it to their heirs, and put a plan in place to help their families accomplish their goals. There are many estate planning options, and everyone will have unique needs during the Great Wealth Transfer.