Citizens Survey Finds Majority of Americans Ill-Prepared for Historic Multigenerational Wealth Transfer

Nearly three quarters of Americans (72%) lack the financial confidence needed to manage a large influx of money on their own, according to a new survey by Citizens. As Baby Boomers, the most financially prosperous generation in history, are set to transfer $84 trillion* in assets over the next few decades, subsequent generations are bracing for what’s being deemed, ‘The Great Wealth Transfer.’ The survey, released today, offers insights into Americans' preparedness to handle significant inbound wealth, underscoring the critical need for expert financial guidance.

"A staggering amount of personal wealth is projected to be passed on to heirs in the coming years, making it the largest transfer of assets in U.S. history,” said Brendan Coughlin, Vice Chair and Head of Consumer Banking at Citizens. "Despite the fact that the majority of Americans acknowledge the importance of having an experienced financial advisor, our new survey shows that more than 50% of Millennials and Gen Z adults have received poor advice in the past. This sharply underscores an opportunity for seasoned wealth managers to foster meaningful, trusted relationships with customers and take market share from the large incumbent wealth firms. At Citizens, we are committed to guiding our customers with personalized advice throughout their financial journey.”

The Citizens survey of more than 1,500 Americans with an oversample of 500 owners of small and mid-market businesses (SMBs), reveals a significant gap in financial confidence and the urgent need for education on the value of engaging a trusted financial advisor. Additional key findings include:

The Great Wind-fail?

• As the ‘Great Wealth Transfer’ accelerates, nearly one-third (31%) of Americans anticipate receiving an inheritance within five years, with Millennials (55%) and Gen Z (41%) among those who feel it’s most likely in their future.
• A majority of Americans (61%) would turn to a financial advisor for guidance if they received a large influx of money, yet the likelihood descends by generation – Gen X (67%), Millennials (61%) and Gen Z (59%) would consult an advisor or banker post-inheritance.
• Nearly one-third (29%) of Americans report they would need to receive an inheritance of at least $1 million to seek professional direction on how to manage it.

It’s a Matter of Trust