Millennials And Gen Z Account For Only 5% Of All The Wealth In The U.S.
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The rich get richer and people under 40 get poorer and poorer. At least that is what data from the Federal Reserve is telling us.
The wealth distribution by age in America has been a hot topic for years. And of course older Americans will naturally account for the most of the wealth in this country, that is logical, but have Millennials and Gen-Z fallen behind?
According to the Fed’s data… Yes. Yes they have.
In fact, when Baby Boomers were at the same stage in their lives as Millennials are now, they controlled 21% of all the wealth in the United State. Compared to the 4.6% that Millennials currently control, that is over 4 times the amount of wealth.
Millennials have certainly faced some interesting challenges and circumstances over the years — 9/11, Enron scandal, the fallout from the subprime mortgage crisis, stagnant wages and a rising cost of living, a global pandemic, etc — but every generation has had its share of financial setbacks.
Millennials have also been less trusting of the stock market; they currently own 2.2% of all equities.
Breakdown Of Wealth Distribution By Age In The US
- Baby Boomers: 53%
- Gen X: 25%
- Silent Generation: 17%
- Millennials: 4.6%
- Gen Z: 0.4%
The silver lining is there is still time for some Millennials to catch up. It’s easier to grow wealth when you start early, but you can still become a millionaire by age 60 even if you don’t get started until you’re 40. The uphill climb will certainly be much greater, but it is not impossible.
And look on the bright side, most Millennials’ parents are Baby Boomers so if earning and investing doesn’t work out, there’s always the hope of getting a fat inheritance.