Shrinking inheritance.

The dynamics of inter-generational wealth movements are fascinating and a subject that does not get enough attention. The financial trauma that one generation experiences, like a ripple on a pond, keeps influencing the wealth of their children, grandchildren and beyond.

The simple truth is that the amount of money needed to fund an average life span is rapidly increasing which means that there will be little if any monies to be passed onto future generations.

The latest research from the US shows that 15% of baby boomers expect an inheritance from their parents which is down from 27% in 1989. Among "post-boomers" (those born after 1964) the figures are even more startling; only 6% expect a bequest, down from 11%.Some of the possible implications – a brake on house price inflation – less capital purchases in mid life – a slow wealth depletion for future generations. Pretty scary stuff.