Gen X Wealth Doubled During The Pandemic – Here’s How
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According to new data from the Federal Reserve, Gen X is finally getting better with money – both in earning and saving.
Generation Xers will be the first to admit their early mistakes with money, but the recent pandemic has proven a golden opportunity to create wealth for people 41-56 years old. The generation hit the hardest by the financial crisis of 2008 is now rebounding.
“Their (Gen X) careers have since stabilized and those who could save money have invested in the stock market and 401Ks retirement accounts.
As of June this year, Generation X held 28.6% of the nation’s wealth, up 3.9 percentage points from the first quarter of 2020, according to Fed data. In dollar value, that translates into a 50% gain in their aggregate net worth — the difference between a household’s assets and debts.”
One way that Generation X was able to increase their wealth was the housing boom during the pandemic. Many Gen Xers already owned a home, enabling the generation to capitalize on people willing to pay more for homes.
Gen X also benefited thanks to a rise in pension assets. The youngest Boomers – now aged 57 – retired in droves during the pandemic, so they are drawing down on their pensions.
According to the federal data, Boomers still lead the way as far as savings go, though, accumulating more than $1.6 trillion in excess savings in the past two years, twice as much as Gen X.
[via Bloomberg Wealth]