The $120 trillion question: Will credit unions win the great wealth transfer — or lose it?
Over the next two decades, the financial services industry will experience one of the largest intergenerational transfers of wealth in history.
Boomers are the wealthiest generation to have ever lived — in the U.S. boomers account for almost 52% of the country’s total wealth. Researchers estimate that between $70 trillion and more than $120 trillion will move from Baby Boomers and the Silent Generation to Generation X, Millennials, and Generation Z. For credit unions, this is more than an economic trend — it represents a defining strategic moment unlike anything the financial services industry has experienced. Institutions that successfully build relationships with the next generation stand to retain and grow member wealth, while those that fail to engage heirs risk losing decades of trusted relationships almost overnight.
Recent industry publications—including Your Path of Happiness: The Credit Union Playbook for a Successful Retirement by Tom Marks and Ron Draper and a recent white paper from MDT— highlight the urgency of preparing for the Great Wealth Transfer. In addition, several recent surveys quantify this wealth transfer according to the generations who will benefit from this enormous inheritance and their preferences and plans on how the money will be spent or invested. Debt pay-off, home purchases (mortgages), and charities are at the top of the list for where much of this transfer will go.
For credit unions, this enormous wealth transfer presents both massive opportunity and significant risk. It should be top of mind for credit union executives who want their institutions to remain competitive and should be incorporated into every credit union’s strategic and operational planning.
While credit unions have long excelled at serving members through every stage of life, inherited wealth often changes financial relationships. When assets move from one generation to the next, they frequently move to new financial institutions as well. Studies suggest that as many as 70% to 90% of heirs change financial advisors or institutions after receiving an inheritance, placing inherited assets at significant risk if relationships with the next generation have not already been established.
Conversely, institutions that proactively prepare for this transition can strengthen member loyalty, deepen relationships across generations, and reinforce their mission of improving financial well-being.
The question is no longer whether the wealth transfer will happen. The question is whether credit unions will be positioned to benefit from it.
Why the Wealth Transfer Matters
Many credit unions have benefited from loyal Baby Boomer members who accumulated wealth through homeownership, retirement savings, business ownership, and long-term investing. These members often maintain multiple financial products with their credit union and have decades-long relationships built on trust.
However, today’s heirs frequently bank differently than their parents.
Millennials and Gen Z consumers expect:
Digital-first experiences
Personalized financial advice
Convenient investment tools
Integrated financial planning
Mobile access to virtually every service
They are also far less institutionally loyal. Convenience, technology, and perceived value often outweigh family tradition when choosing financial providers.
Without intentional engagement, inherited assets can quickly migrate to national banks, online brokerages, fintech firms, or wealth management companies that already have relationships with beneficiaries.
For credit unions, this isn’t simply about retaining deposits. It affects:
Investment assets
Mortgage relationships
Lending opportunities
Small business services
Future membership growth
Long-term profitability
The institutions that win the next generation today will likely retain the transferred wealth tomorrow.