Sponsored by Vanguard AustraliaJune 18, 2026 — 4:13pmAustralians are on the cusp of inheriting trillions of dollars over coming decades. The catch: many are likely to receive that wealth a lot later in life than previous generations, often while planning their own retirement, supporting children and juggling ongoing commitments.For Daniel Shrimksi, managing director of Vanguard Australia, preparation is going to be critical.As trillions change hands, younger Australians are approaching investing differently from previous generations.iStock“Inheritance can create opportunity. Without a plan, it can lead to poor outcomes.”An estimated $5.4 trillion is expected to pass between generations by 2050, making the great Australian wealth transfer one of the largest shifts of private wealth in the nation’s history.As family homes, superannuation balances, investment properties and financial assets change hands, Australians are increasingly confronting more decisions about investing, retirement planning and long-term financial security.Shrimski says the transfer is likely to affect a far broader cross-section of Australians than many realise.“It’s not just something that’s going to happen with traditionally high net worth families, it’s going to be across all different types of families of all different wealth makeups,” he says.“One out of two Australians actually have or expect to receive an inheritance.”For many Australians, the transfer will involve much more than a family home. Homes, investment properties, superannuation, shares and exchange traded funds (ETFs) are all expected to form part of the wealth that changes hands over coming decades, requiring recipients to make informed choices across multiple asset types.Age is another defining factor.“It’s probably Australians that are later on in their life that are going to be the beneficiaries in the first instance, so more your 50s and 60s than your 30s and 40s,” Shrimski says.That timing matters. Many recipients may already be navigating their own retirement planning, supporting children or grandchildren and managing existing financial commitments when inherited wealth arrives.The wealth transfer is coinciding with a shift in how Australians invest.“There’s definitely a generational shift going on in terms of investor behaviour,” Shrimski says.As wealth passes to younger Australians, different attitudes towards investing, technology and costs are beginning to shape how inherited assets are managed.Vanguard has observed millennials embracing ETFs and diversified investment solutions more readily than previous generations.According to the firm’s research, younger investors are increasingly seeking simplicity, lower costs and digital access when engaging with financial markets.“We see millennials in particular embracing vehicles like ETFs and other diversified solutions much more than what we’ve seen previous generations,” Shrimski says.“In terms of what they’re looking for and what they want out of investing, they want simplicity, they want lower costs.”At the same time, many Australians have limited experience investing outside superannuation. Vanguard’s research suggests six in 10 Australians do not hold investments beyond their super, creating what Shrimski describes as a significant learning curve for future beneficiaries.“That’s something that we shouldn’t take lightly,” he says.For Shrimski, the discussion ultimately comes back to planning and preparation.Educational upliftA recent Deloitte Access Economics report, The Big Lift: The economic opportunity of uplifting financial capability in Australia, found many Australians may be entering this period of wealth transfer without feeling fully prepared.The report found 59 per cent of Australians have low financial capability and that more than half of Australians aged over 55 have never undertaken retirement planning. It also found financial literacy levels have declined in recent years despite Australians having access to more financial information than ever before.The report says that improving financial capability could help Australians better navigate major life transitions, including inheritance, retirement and wealth transfer.“With younger Australians set to inherit an estimated $5.4 trillion in assets by 2050, rising house prices, increasing sophistication of financial scams, and cost-of-living pressures, uplifting Australia’s financial capability has never before been more urgent,” the report says.For many beneficiaries, inheritance arrives alongside existing financial commitments, retirement planning and family responsibilities, raising new questions about how inherited assets fit within long-term financial goals.“The challenge isn’t necessarily just inheriting wealth, it’s how do you turn that inheritance into long-term financial security,” Shrimski says.Financial confidence remains a concern, particularly among younger Australians and women.“There is a gap in financial confidence as it relates to younger Australians and women in particular,” Shrimski says.Superannuation is becoming an increasingly important part of the wealth transfer discussion.For decades, superannuation was largely viewed as a retirement income vehicle. As wealth increasingly passes between generations, however, super is becoming part of a broader conversation about inheritance, legacy and family wealth.“Super is evolving beyond simply a retirement income vehicle, it’s actually something that is increasingly part of that wealth transfer equation,” Shrimski says.Real financial tensionThe wealth transfer is not only affecting beneficiaries. Older Australians are balancing the desire to enjoy the retirement they have worked hard to achieve while also considering the financial legacy they may leave behind.Many are funding their own retirement while supporting children and grandchildren, creating a complex mix of financial priorities.“There is a real tension and trade-off in that,” Shrimski says.Retirement planning itself is becoming more intergenerational, with families considering the impact of today’s choices on future generations.Shrimski says families would benefit from discussing these issues earlier.“Inheritance planning is something that families just don’t discuss,” he says.Vanguard’s research suggests earlier conversations around inheritance, estate planning and family expectations could help reduce uncertainty and improve preparedness.Wealth transfer decisions can also become complicated, particularly when questions of tax, family wealth and fairness between beneficiaries arise.‘Small a’ financial adviceShrimski says many Australians do not necessarily require comprehensive financial advice but would benefit from access to information and support that can help them navigate unfamiliar financial decisions.“They do need access, not necessarily to a full-service financial advisor, but they need access to some level of guidance, or maybe, as we call it, ‘small-a’ advice,” he says.For Shrimski, planning and preparation will become increasingly important as more Australians navigate inheritance, retirement and wealth transfer decisions.“There’s a lot of work to do to make sure that Australians have access to the support they need, and that families are preparing themselves for the wealth transfer.” Shrimski says.The wealth transfer may be measured in trillions of dollars, but for many Australians the bigger challenge will be navigating the decisions that come with it.As inherited wealth becomes a more prominent feature of financial life, questions around investing, superannuation, retirement planning and long-term financial security are likely to become increasingly important for families across the country.To find out more, please visit Vanguard Australia.The information in this article is general in nature and does not constitute personal financial advice. Your personal objectives, financial situation or needs have not been taken into account when preparing this information. Before making any investment decision, should consider the appropriateness of the information having regard to your objectives, financial situation and needs.From our partners