Economic uncertainty means Generation X delaying will making, research shows
Melanie May | 9 January 2024 | News
Differences in the behaviours and attitudes towards legacy giving of the baby boomer generation compared to Generation X have been revealed in new research, showing how generational attitude differences could impact legacy decisions.
Conducted by the Legacy Foresight research team at Legacy Futures, the research highlights the opportunities and challenges charities will face as Gen X becomes the focus for engagement and provides insight into what impact the current climate of uncertainty is having on legacy planning across population cohorts.
Generation X – wealth and wills
It shows that Generation X will account for 40% of deaths by 2050, with those aged 50-54 appearing to be similarly wealthy to Boomers at the same age, although with profile more towards pensions and less towards property. It also reveals that the top quarter of Generation X households own 70% of wealth, compared to 65% for Boomers.
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However, Generation X are less likely to have made a will than Boomers were at the same age.
More key findings
- Deaths are set to rise by almost a third to reach 825,000 in 2050 — driven primarily by the size of the Boomer population – although by this time, Gen X will account for 40% of deaths
- Boomers have significantly more wealth than previous generations (50% more than War Babies at their age)
- There is greater polarisation of wealth among Gen X, with the top quarter of Gen X households owning 70% of wealth (compared to 65% for Boomers). This shows Gen X holds significant wealth, something that increases the chance of a charitable gift left in a will
The impact of consumer uncertainty
The analysis found that uncertainty around the economy was driving short-term thinking, with respondents from both generations feeling in limbo and putting off making important decisions. This also translated into will-making behaviours — with people delaying making a will, reporting that things seemed too uncertain at the moment to make commitments for the future.
It also found that Generation X are feeling the squeeze more than their Boomer counterparts and are more pessimistic about economic prospects. With many having dependent children at home, the analysis found that they are more likely to be thinking carefully about how they spend their money. Their main aim was to try to hold on to what they had and to save planning for the future for when things feel more certain.
Diversity among the generations
Being child-free is a key driver of legacy giving across all generations. 14% of core Boomer females (now aged 65-75) are child free versus 18% of Gen X females. This will lead to an increase in child-free deaths from mid 2020s. Legacy Futures highlights this as an important consideration for charities as supporters won’t all have automatic beneficiaries and may therefore be seeking ways in which their legacy can live on.
There is also a different religious makeup among Gen X, with a lower percentage identifying as Christian (46% of Gen X versus 67% of core Boomers), and a higher percentage describing themselves as Muslim (6.1% Gen X versus 2.1% of core Boomers) or of no religion (37% Gen X vs 22% of Core Boomers).
Gen X are also considerably more ethnically diverse, with almost 1 in 5 Gen Xers belonging to a Black, Asian, mixed or other ethnic group according to the 2021 census data. This is an increase of 130% from the oldest Boomers, with just 1 in 12 core Boomers identifying as belonging to a non-white ethnic group.
Ashley Rowthorn, CEO of Legacy Futures, commented:
“While economic uncertainty seems to be delaying legacy decision making, the good news is that donors don’t seem to be removing charities from their wills all together. There is still a strong desire to give to causes that matter in life, as well as to family and friends, and charities need to use this moment of pause to deepen and strengthen relationships through good stewardship.
“As time moves on, charities also need to understand the changing generations and make sure they are engaging them on their terms. This latest research helps charities develop long-term programmes, including how to tailor their messaging, develop their storytelling and demonstrate impact.
“The research shows why charities cannot take the same approach with all supporters, bearing in mind the vast differences in attitudes and behaviours. Understanding generational differences aids charities in formulating their communication messaging and content choices, leading to more positive outcomes for all.”
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.