Of course, Baby Boomers are still worth nearly eight times as much. The older cohort saw their wealth increase roughly 28% to over $71 trillion since the pandemic began, while Gen-X saw a 65% jump to roughly $42 trillion. Millennials still hold far less wealth than previous generations did at similar ages.
Silent Generation billionaires are the wealthiest on average across generations. With CEO of Berkshire Hathaway Warren Buffett and Zara founder Amancio Ortega among its ranks, Silent Generation billionaires are most likely to be in finance, fashion, and real estate industries.
Generations and Wealth
Millennials had a median wealth of only $27,420, while “Generation X” (born 1965 to 1980) had $121,400 and baby boomers (born 1946 to 1964) had $240,900. When excluding home equity, Generation X and baby boomers had a median wealth of $48,070 and $90,060, respectively.
Broken down by generation, though, Gen Zers have the most confidence in their savings (69%), followed by boomers at 65%, and both millennials and Gen Xers at 60%.
Yes, that's right, millennials are the most generous generation – there are stats to prove it. Millennials are often given a bad rap for being lazy, job-hopping, entitled, and selfish, whether it's in the workplace or in general day-to-day life.
Average net worth by age
In other words, Americans at retirement age had a median wealth 19 times that of those in the under-35 age group. The average American net worth picks up after age 35. Americans between 35 and 44 years old had a median net worth of $91,110, six-and-a-half times that of those under 35.
They've reaped benefits from low interest rates and inflated housing prices, which increased the value of their assets. As such, many boomers have acquired enough to partake in the greatest wealth transfer in modern history, which will go to their children and philanthropy.
Myth #1: Wealth Lasts Many Generations
But the truth is, around 70 percent of wealthy families lose their wealth by the second generation. Moreso, around 90 percent of families lose wealth by the third generation. There are many reasons why wealthy families are likely to lose their wealth over time.
A groundbreaking 20-year study conducted by wealth consultancy, The Williams Group, involved over 3,200 families and found that seven in 10 families tend to lose their fortune by the second generation, while nine in 10 lose it by the third generation. However, there are ways to be at the odds.
The term "Fuerdai" literally translates to 'rich second generation'. It describes Chinese people born into families of high socioeconomic status, who inherited their wealth but did not create it. The term is often used in a derogatory manner, with emphasis on their overindulgent lifestyles and materialistic attitudes.
Millennials earn more money than any other generation has at their age. But they still hold way less wealth, largely because cost of living has outpaced wage increases. Two recessions before the age of 40 and student debt haven't helped matters.
Millennials think they have it tough, but Gen Z will face the largest average income to housing price ratio in 70 years. Historically, the average home costs about five times the yearly household income, with 2022 data showing the average house costing more than eight times the yearly household income.
At age 30, millennial home ownership hit 42%, compared with 48% for Gen Xers and 51% for baby boomers.
A key message is that age is a significant source of inequality: The largest and youngest groups hold the least wealth—those under 35 years of age (blue line) represent over 25 percent of the population but hold only about 5 percent of total wealth.
The average 64-75-year-old American is 94% wealthier than the average 35-year-old. Today's 40-year-olds own half the wealth of older generations when they were the same age. Baby boomers owned 33% more real estate than Generation X at the same age. Baby boomers are collectively 10 times wealthier than millennials.
The world's 100 richest individuals earned their first $1 million at age 37, on average. The average millionaire is 57 years old.
Millennials are arguably the hardest working generation in the workforce today, albeit how they approach work looks drastically different than their older counterparts. Boomers typically approach work in a hierarchical structure.
People ages 16 to 25, commonly known as Generation Z, consider themselves the hardest-working generation yet won't tolerate being forced to work when they don't want to, according to a new study.
Boomers Prefer Retail Shopping More Than Any Other Generation. 44% of Boomers have discovered new products in retail stores in the past three months, and 38% of them say that's where they find new items most often.
Millennials have been at a disadvantage since the beginning
Compared with these generations, millennials have more debt, a lower net worth, and a worse chance of making more than their parents. Those factors, particularly the rise in student debt, have prevented millennials from getting a home.
In addition, you might notice that the median income for millennials is only $3,000 more than the median income for boomers back in 1989. Wages remain stagnant and are outpaced by inflation. For these reasons, boomers were better set up to accumulate the wealth that they've amassed today.
Most Wealthy Families Lose Their Wealth Within Three Generations: How to Avoid this Common Problem. For many wealthy families, it seems as though the money will never run out. Money pours in from investments and other assets. Lavish vacations, fancy cars, and designer clothes are the norm.
Old money refers to people who have inherited significant generational wealth; their families have been wealthy for several generations. In the past, old money would have referred to an elite class: the aristocracy or landed gentry.