Baby Boomers Now Hold More Than 30% of America’s Wealth
Baby Boomers are seeing a real … boom … in their net worth.
Americans ages 70 and older hold a whopping 30 percent of the country’s wealth, Bloomberg reported on Tuesday. That’s according to Federal Reserve data showing that older Boomers have gained $14 trillion in additional net worth since 2019. Those numbers are all the more impressive when you consider that the age group makes up just 11 percent of the U.S. population.
More from Robb Report
The jump can be attributed to a couple of factors: First, America’s population is growing older, meaning that there are more people ages 70 and older than there were even just a few years ago. Compared with 2019, there are about 2.3 million more Americans in that age group now. Second, those older people are more likely to own homes and hold stocks, both of which have gained value recently. Home values, equities, and mutual funds have all been trending in the right direction when it comes to wealth accumulation.
Despite some economic dips during the pandemic, older Americans have seen an extra $5 trillion in equity gains since 2019, according to Bloomberg. And other data from the Fed shows that the average equity holding for people ages 65 and older was a healthy $1.8 million in 2022, thanks in part to ultra-rich Americans. In total, in the third quarter of this year, almost 38 percent of U.S. corporate equities and mutual-fund shares were held by those 70 and older, the highest number on record in data going back to 1989.
While Boomers are faring quite well, other age groups aren’t doing too hot when it comes to wealth. Those between 40 and 70, who are typically considered to be at their earnings peak, hold less household wealth than they did in 2019. Those 55 to 69 have seen that share drop from 45.2 percent to 42.4 percent, and Americans 40 to 54 have experienced a dip from 23.4 percent to 20.5 percent.
When looking at longer-term trends, the wealth of those under 55 has multiplied by only 2.5 times in the past 25 years. Compare that with a six-fold increase for Americans 70 and older. Okay Boomer, indeed.
Sign up for Robb Report's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.
Solve the daily Crossword
