The $120 trillion question: Will credit unions win the great wealth transfer — or lose it?

Over the next two decades, the financial services industry will experience one of the largest intergenerational transfers of wealth in history.

Boomers are the wealthiest generation to have ever lived — in the U.S. boomers account for almost 52% of the country’s total wealth. Researchers estimate that between $70 trillion and more than $120 trillion will move from Baby Boomers and the Silent Generation to Generation X, Millennials, and Generation Z. For credit unions, this is more than an economic trend — it represents a defining strategic moment unlike anything the financial services industry has experienced. Institutions that successfully build relationships with the next generation stand to retain and grow member wealth, while those that fail to engage heirs risk losing decades of trusted relationships almost overnight.

Recent industry publications—including Your Path of Happiness: The Credit Union Playbook for a Successful Retirement by Tom Marks and Ron Draper and a recent white paper from MDT— highlight the urgency of preparing for the Great Wealth Transfer. In addition, several recent surveys quantify this wealth transfer according to the generations who will benefit from this enormous inheritance and their preferences and plans on how the money will be spent or invested. Debt pay-off, home purchases (mortgages), and charities are at the top of the list for where much of this transfer will go.

For credit unions, this enormous wealth transfer presents both massive opportunity and significant risk. It should be top of mind for credit union executives who want their institutions to remain competitive and should be incorporated into every credit union’s strategic and operational planning.

While credit unions have long excelled at serving members through every stage of life, inherited wealth often changes financial relationships. When assets move from one generation to the next, they frequently move to new financial institutions as well. Studies suggest that as many as 70% to 90% of heirs change financial advisors or institutions after receiving an inheritance, placing inherited assets at significant risk if relationships with the next generation have not already been established.

Conversely, institutions that proactively prepare for this transition can strengthen member loyalty, deepen relationships across generations, and reinforce their mission of improving financial well-being.

The question is no longer whether the wealth transfer will happen. The question is whether credit unions will be positioned to benefit from it.

Why the Wealth Transfer Matters

Many credit unions have benefited from loyal Baby Boomer members who accumulated wealth through homeownership, retirement savings, business ownership, and long-term investing. These members often maintain multiple financial products with their credit union and have decades-long relationships built on trust.

However, today’s heirs frequently bank differently than their parents.

Millennials and Gen Z consumers expect:

• Digital-first experiences
• Personalized financial advice
• Convenient investment tools
• Integrated financial planning
• Mobile access to virtually every service

They are also far less institutionally loyal. Convenience, technology, and perceived value often outweigh family tradition when choosing financial providers.

Without intentional engagement, inherited assets can quickly migrate to national banks, online brokerages, fintech firms, or wealth management companies that already have relationships with beneficiaries.

For credit unions, this isn’t simply about retaining deposits. It affects:

• Investment assets
• Mortgage relationships
• Lending opportunities
• Small business services
• Future membership growth
• Long-term profitability

The institutions that win the next generation today will likely retain the transferred wealth tomorrow.

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The Credit Union Advantage

Despite increasing competition, credit unions possess several advantages that many large financial institutions struggle to replicate. Trust remains one of the strongest. Credit unions consistently rank among the most trusted financial institutions in America. Their member-owned structure naturally aligns with consumers who increasingly value authenticity and transparency.

Additionally, many credit unions already serve multiple generations within the same family. Grandparents, parents, and children often share membership — a relationship that provides a unique opportunity to build continuity before assets change hands. However, many heirs have little or no direct relationship with their parents’ credit union.

Unlike institutions focused solely on assets under management, credit unions can position themselves as lifelong financial partners, helping families navigate education, careers, homeownership, retirement, estate planning, and ultimately wealth transfer.

That relationship-centered model can become a competitive differentiator if it extends intentionally across generations.

Five Strategies to Capture the Opportunity

1. Build Multi-Generational Relationships

Too often, financial institutions focus exclusively on the current asset holder.

Instead, credit unions should actively engage the entire family.

This might include:

• Family financial education events
• Joint financial planning sessions
• Youth savings programs
• Young professional advisory councils
• Educational seminars for adult children

The goal is simple: ensure heirs know—and trust—the credit union long before they inherit assets.

2. Expand Wealth Management Services

Many members approaching retirement require more than traditional banking.

They increasingly seek guidance on:

• Estate planning
• Investment management
• Retirement income
• Tax-efficient transfers
• Charitable giving
• Trust services

Whether offered internally or through strategic partnerships, comprehensive wealth management capabilities allow credit unions to remain central to members’ financial lives.

Importantly, these conversations should begin years before wealth transfers occur.

3. Modernize the Digital Experience

The next generation expects frictionless digital interactions.

Credit unions should evaluate whether their digital platforms provide:

• Simple account opening
• Digital investment access
• Mobile-first design
• Personal financial management tools
• Secure document sharing
• Virtual financial consultations

A member inheriting significant assets should not feel compelled to leave simply because another institution offers a better digital experience.

Technology increasingly influences where inherited wealth ultimately resides.

4. Develop Financial Education Around Inheritance

Receiving wealth is emotionally complex and financially challenging. Many heirs have little experience managing substantial assets.

Credit unions can become trusted advisors by providing education on topics such as:

• Managing inherited wealth
• Estate settlement
• Tax considerations
• Budgeting after inheritance
• Investing for long-term goals
• Family financial communication

Educational resources reinforce the credit union’s role as a financial coach rather than merely a transaction provider.

5. Use Data to Identify Transition Opportunities

Modern analytics can help identify members likely approaching significant life transitions.

Examples include:

• Retirement
• Required minimum distributions
• Estate planning activity
• Aging demographics
• Significant deposit changes
• Family account relationships

Rather than waiting for assets to leave, credit unions can proactively initiate conversations about succession planning and next-generation engagement.

The institutions using data strategically will be better positioned to retain relationships during periods of financial transition.

Mission and Opportunity

The Great Wealth Transfer aligns remarkably well with the cooperative mission of credit unions. Helping families preserve financial stability across generations reflects the movement’s foundational purpose. By preparing members for responsible wealth transfer, credit unions strengthen not only individual households but also the communities they serve.

This opportunity extends beyond affluent members. Many middle-income families will experience meaningful inheritances through home equity, retirement accounts, insurance proceeds, or family businesses. These households often need guidance even more than wealthy investors.

Credit unions have long specialized in serving members overlooked by larger financial institutions. The coming wealth transfer offers another opportunity to demonstrate that foundational credit union commitment.

Looking Ahead

The Great Wealth Transfer will reshape financial services over the next twenty years.

Some institutions will view it as an external trend beyond their control. Others will recognize it as an opportunity to deepen relationships, expand advisory services, modernize member experiences, and strengthen the cooperative model for future generations.

Credit unions have always been built on relationships rather than transactions. If they intentionally extend those relationships across generations, they will not only retain assets—they will preserve trust, strengthen communities, and ensure that the cooperative difference remains relevant for decades to come.

The wealth transfer has already begun. The institutions preparing today will be the ones serving tomorrow’s members.