The news: Many mass affluent consumers in the US are making financial decisions based on expected inheritances that they haven’t actually confirmed with family members, according to a new Key Wealth survey. Those assumptions are leading some consumers to save less, invest differently, and build long-term financial plans around wealth that may never materialize.

Zooming in: Only 34% of mass affluent consumers expecting an inheritance have discussed how much they might receive, when, or under what conditions, yet 64% say those expectations have influenced their financial decisions. 

The consequences are potentially significant: 36% say they've saved or invested at least $100,000 less because they expect to inherit wealth. 

At the same time, 78% say they would value an advisor-led family conversation about inheritance, but fewer than half (47%) have ever had one.

Why it matters: Banks and wealth managers have an opportunity to help clients build financial plans based on facts rather than assumptions. As trillions of dollars transfer between generations over the coming decades, clients will need realistic guidance on estate and retirement planning. Institutions that provide it can strengthen advisory relationships while helping clients avoid costly planning mistakes if expected inheritances fall short or don’t materialize.

Implications for financial providers: The opportunity extends beyond investment advice. By facilitating family financial conversations and engaging both current clients and their heirs, institutions can strengthen advisory relationships across generations and improve the likelihood of retaining transferred assets.

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