The 100-year life: why Gen Xers shouldn’t rely on inheritance to fund retirement

But longer lifespans, combined with how retirees are spending in later life, are shifting inheritance math and may mean the next generation receives less than they expected. Building a retirement plan around money you don’t control, and may not receive when you expect, can introduce significant risk to your plan, especially if it increases the odds of outliving retirement savings.

Headlines about the Great Wealth Transfer add to the confusion. Estimates suggest that more than $100 trillion will be transferred from older generations—largely baby boomers—to younger ones over the next 20 to 25 years. The sheer size of this number can make an inheritance feel almost inevitable. Yet the size and timing of any transfer are far from guaranteed, because the real decision makers are still the people who currently hold the assets. 

A major reason inheritance is becoming less reliable as a retirement funding strategy is simple: parents are living longer. Modern retirees may live 25 to 35 years after they stop working, which extends the period during which they need income, liquidity, and flexibility—and heightens longevity risk retirement considerations.

That longevity trend continues to broaden, as the number of people living to 100 is expected to quadruple over the next 30 years,¹ making a 40-year retirement a real possibility for many families. While that’s good news from a life perspective, it changes the math of estate planning by shifting inheritances later, sometimes until the children are close to retirement themselves or even already retired.

Later, and less

Timing is only part of the story. Gen Xers may not only wait longer—they may receive less. Longer, healthier lives can mean baby boomers spend more of their assets over time, prioritizing travel and lifestyle spending in the early years, followed by potentially higher costs tied to health and overall senior well-being later on. Add in the reality that many people want to age well on their own terms, maintaining purpose and social connections, and it’s understandable why parents may keep more financial resources in reserve.

Just as important, attitudes toward inheritance are shifting. Rather than leaving large estates, many parents prefer to give during their lifetimes so they can watch their children and grandchildren benefit. That can take the form of help with college costs, a down payment on a home, or contributions to grandchildren’s education. These gifts can be meaningful, but they may also reduce what’s left later—and they don’t necessarily align with Gen X’s retirement timeline.

At the same time, Gen X faces structural retirement headwinds that earlier generations didn’t experience in the same way. Workplace pensions have become less common as the retirement landscape has shifted from defined benefit plans to defined contribution plans. Many Gen Xers are also likely to be supporting both children and aging parents at the same time—leaving less room in the monthly budget to catch up on retirement savings. 

Adjusting the plan

So, how can Gen Xers adjust to less certainty about inheritance? Start with a practical assumption: plan to receive less, and plan to receive it later. Even if an inheritance is likely, treat it as a potential bonus, rather than a cornerstone, to help your retirement strategy remain resilient. That means prioritizing proactive planning. Things to consider include: maximizing retirement contributions where possible, paying down debt, and building robust emergency reserves to help reduce the chance that short-term surprises derail long-term goals.

It also means having candid conversations with parents about expectations and estate plans. These discussions can feel uncomfortable, but they can prevent surprises and support a smoother transition of assets when the time comes. Clarity doesn’t require exact numbers—it can be as straightforward as understanding whether parents expect to spend down most of their savings, whether they’re planning significant lifetime gifts, or whether long-term care needs could materially affect the estate.

Finally, recognize that retirement longevity planning is a core part of getting the numbers right. Saving and investing—and even planning for healthcare needs—may no longer be enough on their own. With retirement potentially lasting decades, people increasingly need a more comprehensive plan that considers multiple dimensions of living a longer life: lifestyle, family responsibilities, and how financial decisions today may need to flex over time.

Ultimately, the most secure retirement is the one you can fund on your own terms. Inheritances may still play a role—but because longevity, spending, and shifting family priorities can delay and diminish wealth transfers, Gen X is best served by building a plan that works without one.