How 4.2 million Americans turning 65 will reshape money conversations

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The US is entering a historic demographic shift: In 2025, a record 4.2 million Americans are forecast to turn 65, the largest number in a single year.

This milestone, dubbed “peak 65,” is a “huge demographic moment,” Fiona Greig, global head of investor research and policy at Vanguard’s Investment Strategy Group, said on the Decoding Retirement podcast (see video above or listen below).

“Not until 2050 will so many people again be turning 65,” she said. “This is the largest bulge in our aging population that we’ve ever experienced.”

Read more: What is the retirement age for Social Security, 401(k), and IRA withdrawals?

It’s also a massive financial moment.

The baby boomer generation has accumulated an estimated $82 trillion in wealth. Some of that will be spent in retirement — on travel, healthcare, or long-term care — but a substantial portion will also be transferred to the next generation, either as a planned inheritance or when older adults outlive their resources.

This massive shift of wealth raises an important question: Who’s next in line?

In many cases, it’s a spouse — often a woman. “Married women have about a 70% chance of outliving their husbands,” Greig said. “And if they do, they can expect to live for another 10 years.”

It also means families must talk openly — and early on — about money, discussing what kinds of assets they have, where they are held, and what their goals are.

“These are not just estate planning questions,” Greig said. “They’re essential financial conversations that can help families manage both assets and expectations.”

These discussions may be uncomfortable, as discussing money — especially across generations — has long been considered taboo.

Read more: Retirement planning: A step-by-step guide

But that’s starting to change. Today, more families are facing these questions earlier, often due to student debt, college funding, or early participation in 401(k) plans. Trading apps and financial platforms are also pushing younger generations to talk about investing.

That exposure is shifting attitudes, which is reason for optimism.

“I’m hopeful that families can have a more honest conversation through the years — not just when it matters most in retirement,” she said.

For older adults, the desire not to be a burden on their children is common — but good intentions don’t replace planning. Waiting too long to talk about finances can lead to confusion or a crisis, especially as people age.

“With these longer lifespans, about two-thirds of 70-year-olds can experience some form of cognitive decline,” Greig said. “I’m not saying full-on dementia, but we start to lose our acuity.”

The result? Greater vulnerability to scams, mistakes, or poor decisions.

“If there’s a simple reason to have this conversation with the next in line, it’s to protect the assets that the family has worked so hard to accumulate,” she said.

Each Tuesday, retirement expert and financial educator Robert Powell gives you the tools to plan for your future on Decoding Retirement. You can find more episodes on our video hub or watch on your preferred streaming service.