How One Generation Came to Hold a Disproportionate Amount of Wealth
Almost any frustrated conversation about money today is coming from a young person. The sentiment is the same; younger generations are working hard, yet financial milestones seem out of reach. Rising home prices, record debt, and wages that don’t keep pace have created a sense of running on a treadmill. Even so, one generation is looking down from the top of the mountain.
They’ve accumulated wealth in ways that now shape everything from housing markets to inheritance expectations. How that happened is less about flawless financial planning and more about timing, policy, and a streak of luck that history may not repeat.
A Staggering Share Of The Pie
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Baby Boomers, born between 1946 and 1964, now control more than $78 trillion in the United States alone, according to Federal Reserve data. That’s over half of all household wealth, even though they make up only about one-fifth of the population.
Their stock holdings alone are valued at around $23 trillion, which is greater than the total wealth of all millennials combined. By comparison, Generation X holds roughly $46 trillion, and millennials are sitting on just $13 to $15 trillion. The scale of this imbalance is historic.
Boomers entered adulthood during one of the most favorable economic stretches in modern history. Housing was cheap, with homes priced at only two or three times annual income in many places. The stock market delivered decades of gains, with the S&P 500 climbing by more than 2,800 percent since 1983.
Retirement accounts like 401(k)s grew alongside company pensions, and credit was expanding at the same time. Even with the same savings habits, Boomers achieved lifetime returns far beyond what later generations could match. They enjoyed average annual returns above 9 percent, compared to 6 to 7 percent for Gen X and millennials.
Property became one of the biggest engines of wealth. Boomers bought homes before prices surged to record highs, and many are still holding those properties today. The National Association of Realtors recently reported that Boomers now account for more than 40 percent of home purchases and over half of home sales.
Their gains were magnified by favorable structures built into the economy.
The Myth Of Pure Merit
It’s tempting to frame this story as Boomers being more disciplined or financially savvy. Yet, analysts stress that much of their wealth came from broader conditions. In the UK, for example, property values soared after deregulation in the 1980s. In the US, government subsidies for homeownership and pension tax relief pushed wealth upward.
A Bond University study of global returns across 150 years found that both housing and stocks averaged about 7 percent annual real growth, but outcomes depended entirely on when someone started investing. Boomers were born at the right time, while millennials and Gen Z stepped in during financial crises, high student debt, and unaffordable housing markets.
Still, boomers won’t hold their fortunes forever. Analysts estimate that an $84 trillion wealth transfer will occur by 2045 by moving assets into the hands of Gen X, millennials, and Gen Z, though the distribution will be uneven.
The top 10 percent of households will capture the majority of that money, while the bottom half of Americans may see very little. Healthcare costs, longer retirements, and multiple heirs could also shrink inheritances. For younger generations, waiting for a windfall isn’t a reliable plan.
A Generational Divide With Staying Power
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The great wealth divide isn’t just between young and old. It also runs within generations. Not all Boomers gained equally; women and workers in insecure jobs often missed the housing and stock booms. Among millennials, those with wealthy parents will leap ahead, while others face decades of high rent and limited savings. The pattern repeats across countries.