Northwestern Mutual's 2025 Planning Study: Only 20% of Americans Now Expect to Receive an Inheritance, Down From 25% Last Year

Only 20% of U.S. adults expect to receive an inheritance, down from 25% in 2024. Expectations fell most among younger groups, with Gen Z dropping from 38% to 30% and Millennials falling from 32% to 26%. Younger workers were most likely to include an inheritance in long-term assumptions, and they revised those assumptions downward faster than other demographics. Longer lifespans, higher healthcare spending, and reduced savings capacity among parents and grandparents contribute to the decline. Federal data show a personal savings rate falling from 6.2% in Q1 2024 to 4.0% in Q1 2026 while disposable income rose. Essential housing and healthcare costs increased, absorbing income gains and leaving less for legacy saving. Consumer sentiment also weakened, with the University of Michigan index reaching 48.2 in May 2026, reinforcing financial pressure that can reduce transfers to the next generation.

"Only 20% of U.S. adults now expect to receive an inheritance, down from 25% in 2024. That five-point drop in a single year is a meaningful signal for anyone in their 40s building a retirement plan around a future windfall. The math behind the windfall is deteriorating."

"The decline is sharpest among those with the most years of compounding ahead of them. Gen Z expectations dropped from 38% to 30% year over year, and Millennials fell from 32% to 26%. Younger workers were the demographic most likely to fold an inheritance into their long-term assumptions, and they are now revising those assumptions down faster than anyone else."

"The personal savings rate has slid from 6.2% in the first quarter of 2024 down to 4.0% in the first quarter of 2026, even as nominal per capita disposable income climbed to $68,617. Wages consistently climbed while savings receded because essential daily costs absorbed the difference. Essential housing and healthcare expenditures have both expanded rapidly over the past 15 months, allowing inflation to systematically compound household pressures."

"The University of Michigan index crashed all the way down to 48.2 for May 2026, landing deep inside pessimistic territory and matching classic recessionary readings. When the segment of the population that intends to leave money behind feels financially restricted by basic living expenses, they are forced to spend down legacy assets that would otherwise transfer to the next generation."

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