Americans Are Counting on Their Parents’ Death to Fund Retirement: Why Inheritance Is Becoming Part of Retirement Plans

Americans and inheritance: A growing number of Americans are increasingly looking toward a future inheritance to help finance their retirement, according to new polling. The trend highlights a major financial concern facing households across the United States: for some people, building enough personal savings for retirement has become so difficult that expected money from parents or relatives is being included in long-term financial plans.

A recent LendingTree survey found that 43% of prospective heirs said they are counting on an inheritance or financial gift “a great deal” to help fund retirement, while another 38% said they are counting on it “somewhat.” Combined, 81% of respondents said an expected inheritance plays at least some role in their retirement planning.

The findings come as the U.S. prepares for what could become one of the country’s largest intergenerational transfers of wealth. LendingTree estimates that approximately $17.2 trillion could be transferred between 2026 and 2045, although that figure represents a projection rather than guaranteed inheritance for individual families.

Americans Increasingly Expect Future Inheritance

The survey provides an interesting picture of how younger and middle-aged Americans are thinking about wealth.

According to the reported LendingTree findings, 33% of Americans under 65 expect to receive an inheritance or financial gift in the future. The percentage is higher among certain groups, reaching 53% among people earning at least $100,000, 46% among parents with children under 18 and 43% among Gen Z adults.

That expectation does not necessarily mean Americans are literally wishing for their parents to die. Instead, it reflects a broader financial reality: many households believe that inherited property, investments, cash or other assets could eventually provide financial support.

For some prospective heirs, inheritance could mean paying off a mortgage, reducing debt or having enough money to stop working earlier.

But financial experts and ordinary Americans alike have warned that inheritance is an uncertain source of retirement income.

The $17.2 Trillion Wealth Transfer

One of the most significant figures surrounding the story is the estimated $17.2 trillion wealth transfer between 2026 and 2045.

LendingTree’s projection is based on wealth held by older homeowners, broader household assets and mortality patterns. It does not mean that every younger American will receive a large inheritance.

The enormous projected transfer is nevertheless important because older generations hold substantial amounts of U.S. housing and financial wealth.

As those assets eventually move to children, grandchildren and other beneficiaries, the transfer could influence housing, investment, debt repayment and retirement decisions.

However, the timing is impossible to predict for an individual family.

A parent may live for another five, 10, 20 or even 30 years. During that period, their financial circumstances can change dramatically.

Why Inheritance Is Becoming Part of Retirement Planning

Retirement planning in the U.S. has become increasingly complicated.

Workers often need to combine employer retirement plans, personal savings, Social Security and investment income to maintain their lifestyle after leaving the workforce.

Housing costs, healthcare expenses and longer life expectancies can further increase the amount people need to save.

Against this backdrop, an expected inheritance can look like a potential financial safety net.

For someone who expects to inherit a home or investment portfolio, the future value may appear large enough to change their retirement calculations.

But there is an important distinction between expecting an inheritance and actually receiving one.

Until the assets legally transfer, they remain the property of the parent or relative.

Many Families Have Not Clearly Discussed Inheritance

One of the most striking findings from the survey is the communication gap between prospective heirs and the people who may leave them money.

Only 57% of surveyed prospective heirs said they had clearly discussed the amount, timing or likelihood of an inheritance with the person they expect to receive it from.

Another 28% said the topic had only been discussed broadly, while 16% said they had not discussed it at all.

This creates a major problem for retirement planning.

Someone may assume they will inherit a particular property or amount of money without knowing the parent’s actual financial situation, estate plan or future healthcare needs.

A casual family conversation about “leaving the house to the children” is very different from a legally established estate plan.

Parents May Not Leave as Much as Children Expect

There is another important gap in expectations.

According to the LendingTree findings, only 43% of Americans aged 65 and older said they plan to give an inheritance or financial gift.

That means a significant portion of older Americans do not necessarily intend to leave assets to their children or other relatives.

Some may want to spend their money during retirement. Others may donate assets, provide financial support while they are alive or simply need their savings for healthcare and long-term care.

This is why an expected inheritance can disappear or become significantly smaller over time.

Healthcare Costs Can Change the Equation

One of the biggest uncertainties surrounding inheritance is healthcare.

Older Americans may require years of medical treatment, assisted living, nursing care or other services.

Those costs can significantly reduce an estate before assets are eventually distributed to heirs.

Even families that appear wealthy on paper may have substantially less available for inheritance after years of retirement spending and healthcare expenses.

This is particularly important for people who are planning their own retirement around an expected inheritance.

The amount they eventually receive could be very different from what they currently estimate.

Property Is Not the Same as Cash

Real estate is another reason inheritance expectations can be misleading.

A parent may own a valuable home, but that does not mean the child will receive an equivalent amount of cash.

If multiple heirs inherit the property, ownership may be divided. Family members may disagree over whether to sell it. There may also be mortgages, taxes, maintenance expenses and other obligations.

A house worth hundreds of thousands of dollars may therefore take time to convert into usable retirement money.

This is particularly important when someone assumes they can immediately use inherited property to pay for retirement.

Gen Z and Younger Americans Are Also Looking Ahead

The LendingTree findings indicate that inheritance expectations are not limited to older millennials or people approaching retirement.

The survey found that 43% of Gen Z adults surveyed expect to receive an inheritance or financial gift.

For younger Americans facing high housing costs, student debt and other financial pressures, an eventual inheritance can appear to offer a path toward financial stability.

Some may imagine using inherited money for a down payment, education, investments or early retirement.

But because these individuals may be decades away from receiving an inheritance, their financial circumstances could change considerably before the money becomes available.

The Risk of Building a Retirement Plan Around Inheritance

Financial planning becomes dangerous when an uncertain asset is treated as guaranteed income.

Consider a hypothetical worker who believes they will eventually receive $500,000 from their parents.

They might save less for retirement because they expect the inheritance to fill the gap.

But several things could happen before that money arrives. The parents could need expensive long-term care, change their estate plan, sell their property, live much longer than expected or experience investment losses.

The worker could then reach retirement with a savings shortfall.

That is why an expected inheritance should generally be treated as a potential bonus rather than the foundation of a retirement strategy.

The Emotional Side of Inheritance

There is also an uncomfortable emotional dimension to this trend.

Planning financially around inheritance can create complicated feelings because the money is connected to the death of a loved one.

People can simultaneously love their parents and understand that they may eventually inherit their assets.

The problem arises when financial expectations become so important that family relationships become affected.

Inheritance disputes can also create conflicts between siblings and other relatives.

For this reason, open communication and clear estate planning can be extremely important.

Americans Should Plan for Retirement Without Counting on Inheritance

The safest approach is to build a retirement plan based on resources that are actually under an individual’s control.

That can include:

• Employer-sponsored retirement accounts
• Individual retirement savings
• Emergency funds
• Long-term investments
• Social Security benefits
• Home equity where appropriate
• Other reliable income sources

An inheritance can then become an additional financial resource rather than something the entire retirement plan depends on.

If an inheritance eventually arrives, it could provide an opportunity to pay down debt, invest, improve housing or increase retirement security.

If it never arrives, the retirement plan can still work.

Why the Wealth Transfer Could Reshape America

The projected transfer of $17.2 trillion is significant beyond individual families.

As assets move from older generations to younger ones, inherited wealth could influence the U.S. housing market, investment markets and consumer spending.

Some heirs may use inherited money to purchase homes. Others could invest it in stocks, start businesses or pay for education.

At the same time, the distribution of wealth is unlikely to be equal.

People whose parents own valuable homes, businesses and investment portfolios could receive substantially more than people whose families have limited assets.

This could reinforce existing differences in wealth between households.

Inheritance and the American Retirement Crisis

The growing reliance on inheritance also highlights a larger issue: retirement security.

If people increasingly need inherited wealth to retire comfortably, it suggests that traditional retirement resources may not be sufficient for everyone.

The United States has long relied on a combination of Social Security, employer retirement plans and personal savings. But changes in employment patterns and household costs have made retirement planning more challenging for many workers.

The inheritance trend therefore raises a broader question about whether future generations will be able to retire based primarily on their own savings.

What Prospective Heirs Should Do

People who believe they may eventually inherit money should consider taking a conservative approach.

First, they should avoid spending money today on the assumption that an inheritance will arrive tomorrow.

Second, family members can have respectful conversations about estate plans, where appropriate.

Third, prospective heirs should understand that the value of an estate can change significantly over time.

Most importantly, retirement savings should continue regardless of expected inheritance.

A future inheritance can be helpful, but it should not become a substitute for personal financial planning.

Final Verdict

The headline “Americans Are Counting on Their Parents’ Death to Fund Retirement” captures a striking change in how some Americans view future wealth. New LendingTree polling suggests that 81% of surveyed prospective heirs are relying on an expected inheritance or financial gift to some degree when thinking about retirement, while a potentially enormous $17.2 trillion wealth transfer could occur between 2026 and 2045.

However, the numbers should not be interpreted as meaning that Americans universally expect their parents to die so they can retire. Instead, they reveal how anticipated family wealth is becoming part of long-term financial calculations.

The biggest lesson is simple: an inheritance is not guaranteed until it is actually received.

Parents may live longer than expected, spend their savings, face healthcare expenses, change their estate plans or leave assets differently than their children anticipate.

For prospective heirs, the safest strategy is to prepare for retirement as though no inheritance will arrive. If an inheritance eventually comes, it can provide additional financial security. But building an entire retirement around money that belongs to someone else can leave a person exposed to serious financial risk.

As America’s next major wealth transfer takes shape, inheritance is likely to remain an important topic—not only for families, but also for the broader future of retirement security in the United States.