(BPT) - We are approaching a critical tipping point that could shake up the status quo for wealth planning. Millennials and Gen Z are accumulating more wealth at a rapid pace, increasingly dominating the world's ultra-wealthy population. In fact, they have already begun to overtake Baby Boomers as the largest class of individuals with a personal worth exceeding $30 million. This major shift could have serious implications for the Baby Boomer generation.

According to a new report by Altrata, Baby Boomers currently make up nearly half the world's ultra-high-net-worth (UHNW) population. In contrast, Millennials and Gen Z make up just 8%.

That gap, however, is closing fast.

By 2040, Millennials and Gen Z are projected to account for one-third of the world's UHNW population, fueled by rapidly changing dynamics, such as the Great Wealth Transfer - a historical shift in assets from the large, aging Baby Boomer generation to their heirs - and the rise of new wealth sources, such as tech startups, cryptocurrency and social media fortunes.

But Baby Boomers aren't stepping aside just yet.

More than 78 million Baby Boomers are looking to retire within the next 10 to 15 years, but they're retiring later and at a more gradual pace than previous generations. The average planned retirement age now falls between 65 and 69, a marked shift from the past in which 65 was considered the age to retire.

Baby Boomers aren't just working longer - they're also holding onto their power. Baby Boomers own more than 65% of businesses with employees, totaling nearly four million companies and controlling an estimated 80% of total U.S. net worth.

Why does the Baby Boomer generation have such a disproportionately large hold on the country's wealth? One major reason is that they are living longer. Life expectancy has increased significantly over the past century, with Baby Boomers now living an average of 30 years longer than their predecessors.

According to the U.S. Bureau of Labor Statistics (BLS), Baby Boomers' transitions from full career employment to retirement tend to start later than for earlier generations, too. Increasingly, Baby Boomers are following more gradual exit paths from work, easing into retirement rather than quitting cold turkey. That means they're cutting back hours, shifting roles, or stepping into advisory positions rather than fully retiring.

Rupert Murdoch serves as a high-profile example of the trend toward delayed retirement. Despite his towering influence in global media, Murdoch remained actively involved in the leadership of his media empire well into his 90s. It wasn't until 2023, at the age of 92, that he formally announced his retirement from the role of chairman at Fox and News Corp, handing over the reins to his son, Lachlan.

Murdoch's late transition underscores a broader pattern among Baby Boomer leaders - holding on to control long past traditional retirement age and gradually exiting the workforce. But these gradual exits can pose serious challenges for future generations, particularly as it comes to succession planning.

Despite this generation's significant wealth and economic influence, 78% of Baby Boomer business owners do not have a formal exit or succession plan in place. This failure to plan can leave Baby Boomers vulnerable to losing their wealth and their legacy.

Sumner Redstone, the media mogul behind Viacom and CBS, demonstrated how delaying clear succession planning can lead to legacy risk and business strife. Though Redstone, who was in his nineties at the time, eventually designated his daughter as his successor, the path to succession involved public family conflict, lawsuits and reputational damage. This complex succession battle has marred his empire-building legacy.

Baby Boomers may also find themselves vulnerable to manipulation from family members. Zygmunt Solorz, a Polish billionaire and media entrepreneur, is a prime example. Solorz's children reportedly manipulated him into initiating succession protocol before he was ready to step down. At age 69, he is now fighting to retain control of the business empire he built from the ground up.

As Baby Boomers approach retirement, they can face financial and personal risks that must be carefully considered. It's critical that Baby Boomers are aware of these risks and take swift, proactive steps to safeguard against them.

The wealth shift is inevitable. But how it unfolds will depend in large part on how well today's ultra-wealthy prepare for tomorrow.