Baby boomers seize record 31% of US wealth, leaving younger generations behind

Baby boomers now hold a record high of the United States' wealth, according to data from the Federal Reserve. As of recent reports, older Americans own 31% of the wealth in the household sector, a significant increase from 1989 when those over 70 years old held 19% of the wealth. This marks a stark contrast to other generations, with baby boomers making up about 20% of the U.S. population but holding more than $85 trillion in assets. In comparison, millennials, who also make up about 20% of Americans, hold just about $18 trillion, roughly one-fifth that of baby boomers. Apollo chief economist Torsten Slok noted in a Sunday blog post that this trend is not limited to the wealth gap between generations. "Older Americans may be trading in hustling for retirement, but that hasn't stopped them from getting richer," Slok said. The data suggests that baby boomers are not only accumulating wealth but also maintaining control over it, leaving younger generations behind. The disparity in wealth between baby boomers and younger generations is particularly evident when comparing the financial success of Gen Z. Despite making up the same percentage of the population as their baby boomer counterparts, Gen Z holds only $6 trillion in wealth. This is largely due to the challenges faced by young adults, including the rise of AI and the struggle to find entry-level jobs. Many Gen Z individuals are also burdened with credit card debt and student loans, making it difficult for them to accumulate wealth. This trend is not unique to the United States, but it is particularly pronounced in the country. According to a report by the Economic Policy Institute, the wealth gap between older and younger generations has been widening for decades. The report notes that the median wealth of households headed by someone aged 65 or older increased by 40% between 1989 and 2019, while the median wealth of households headed by someone under the age of 35 decreased by 13% during the same period. Experts say that this trend has significant implications for the country's economic future. "The wealth gap between generations is a ticking time bomb for the U.S. economy," said economist and author, Heather Boushey. "If we don't address this issue, we risk creating a society where older generations hold all the wealth and younger generations are left with nothing." As the wealth gap continues to widen, policymakers are facing increasing pressure to address the issue. Some have proposed policies aimed at increasing access to education and job training for young adults, while others have suggested implementing policies to reduce the burden of student loans and credit card debt. However, it remains to be seen whether these efforts will be enough to close the wealth gap and ensure a more equitable distribution of wealth in the United States.