(NewsUSA)
- The balance of the world’s wealth is shifting.
Over the next two decades, Millennials and Gen Z are anticipated to reshape the world’s ultra-wealthy population, gradually overtaking Baby Boomers as the largest class of individuals with a personal worth exceeding $30 million.
But Baby Boomers aren’t stepping aside just yet.
More than 78 million Baby Boomers are looking to retire within the next 10 to 15 years, but they’re retiring later and at a more gradual pace than previous generations. The average planned retirement age now falls between 65 and 69, a marked shift from the past in which 65 was considered the age to retire.
And Baby Boomers aren’t just working longer – they’re also holding on to their power. Baby Boomers own more than 65 percent of businesses with employees, totaling nearly four million companies and controlling an estimated 80 percent of total U.S. net worth.
Increasingly, Baby Boomers are following more gradual exit paths from work than previous generations, easing into retirement and holding on to control long past traditional retirement age and gradually exiting the workforce.
These gradual exits can pose serious challenges for future generations, particularly as it comes to succession planning. Despite this generation’s significant wealth and economic influence, 78 percent of Baby Boomer business owners do not have a formal exit or succession plan in place.
This failure to plan can leave Baby Boomers vulnerable to losing their wealth and their legacy, as illustrated by Sumner Redstone, the media mogul behind Viacom and CBS. Though Redstone, who was in his nineties at the time, eventually designated his daughter as his successor, the path to succession involved public family conflict, lawsuits and reputational damage. This complex succession battle has marred his empire-building legacy.
Baby Boomers may also find themselves vulnerable to manipulation from family members. Zygmunt Solorz, a Polish billionaire and media entrepreneur, is a prime example. Solorz’s children reportedly manipulated him into initiating succession protocol before he was ready to step down. At age 69, he is now fighting to retain control of the business empire he built from the ground up.
As Baby Boomers approach retirement, it’s critical that they take swift, proactive steps to safeguard themselves from financial and personal risks.
The wealth shift is inevitable. But how it unfolds will depend in large part on how well today’s ultra-wealthy prepare for tomorrow.
