Why Gen X should stop planning around an inheritance that may never arrive

Gen X should stop relying on inheritance for their retirement plans, as it may not arrive when expected and could even pose a financial burden. The $124 trillion expected to change hands by 2048, with $14 trillion reaching Gen X, does not guarantee a safety net. Only a third of American households receive inheritance, and the average is far from substantial, with median households expecting less than $50,000.

Moreover, the timing of inherited funds is a problem, as most inheritors are around 58 years old—too old to use the money to its full potential. Care costs, which are not covered by Medicare, could consume most of the inheritance, leaving nothing for the next generation. Instead of relying on inherited wealth, Gen X should build a financial plan that can withstand the challenges of a long life and rising care costs.