What's Happening?
Baby boomers, despite comprising less than 20% of the U.S. population, hold over half of the nation's wealth, amounting to more than $85 trillion. Millennials and Gen Z, who make up 42% of the population, hold only around 10% of the country's wealth.
This disparity is attributed to boomers' early investments in real estate and stocks, benefiting from lower costs of living and favorable economic conditions during their prime earning years. The housing market, influenced by boomers' policies, has created barriers for younger generations seeking homeownership.
Why It's Important?
The concentration of wealth among baby boomers has significant implications for economic inequality and generational financial stability. Younger generations face challenges in accumulating wealth due to high living costs, student debt, and limited access to affordable housing. This wealth gap may hinder economic mobility and exacerbate social disparities. The anticipated Great Wealth Transfer, where boomers pass on $90 trillion to heirs, could provide some relief, but many boomers prefer to enjoy their wealth rather than preserve it for future generations.
