Senior Spotlight: Tracking The Wealth Gap

Baby Boomers Hold +53% Of US Wealth

Historically, Boomers were the age that Millennials are today in 1989, and at that time accounted for 21.3% of US household wealth. That means that in an age-by-age comparison, Baby Boomers had 4x more wealth at the age that Millennials are at today. CNBC noted this same trend last year, citing the primary reasons for the lagging younger generation wealth gap as: rising housing costs, student loan debt and fears about entering the market on account of watching parental losses during the Great Recession. In addition, Millennials are earning 20% less than Baby Boomers did at their age, according to a report by Think Tank New America.

The wealth gap does not just exist between these two generations. Business Insider reports that wealth for those aged 70+ has increased, but not as much as it has for those aged 55-69. Boomers are now outpacing the Silent Generation in terms of wealth accumulation. The Federal Reserve also indicates that wealth for those above age 55 has increased, while wealth for those 54 and younger has decreased.

One other relevant although unfortunate consideration is that the pandemic is only delaying younger workers financial growth, with younger working generations the hardest hit in terms of job losses. But there is some good news! Millennials have not yet reached their peak-earning years; time is on their side! In addition, the gap appears to have closed a bit already, as just one year ago, Baby Boomers were 12x wealthier than the Millennials. In just 12 months and despite a pandemic, that figure has changed to Boomers now being 10x wealthier, so progress has been made.

While this is more food for thought than an actual action-driven article, our hope is that we can gain some perspective on the challenges that we each are facing. It may not always be accurate to compare what we each were earning when, but it might be inspiring to know that while our hardships may be different and our paths nothing alike, we have all overcome something at some point. And that shared ground, that ability to inspire hope and that desire to seek understanding is far more valuable than the cost of your home per square foot at age 32.

If you know anyone at any age who could use some strategic support, historical market perspective or just plain encouragement – please do not hesitate to reach out!

All our best,

Bobbi & Team

Resources Used:

Baby boomers’ wealth is 12 times greater compared to millennials. Here’s why

Millennials dominate the US workforce, but they're still 10 times poorer than boomers