"Older Americans may be trading in hustling for retirement, but that hasn't stopped them from getting richer. Baby boomers now hold a record high of the United States' wealth, Apollo chief economist Torsten Slok noted in a Sunday blog post, citing Federal Reserve data. Compared to 1989, when those over 70 years old held 19% of the wealth in the household sector, older Americans now own 31% of the wealth."
"America's septuagenarians were raised by parents who came of age during the Great Depression and learned the hard way the lessons of frugality and the importance of saving money. But the baby boomer generation owes a great deal of their financial security to the stars aligning during their formative years. In the 1970s when many baby boomers entered the housing market, inflation surged, making buying a home an appealing investment. As home values soared in the following decades, so, too, did the generation's equity."
Baby boomers now hold a record-high share of U.S. household wealth, rising to about 31% from 19% in 1989. Boomers control more than $85 trillion in assets while millennials hold roughly $18 trillion and Gen Z about $6 trillion, despite similar population shares. The concentration of wealth among boomers leaves less for younger cohorts. Contributing factors include frugal upbringing, favorable timing entering the housing market during 1970s inflation, decades of home-value appreciation and accumulated equity. Younger generations face student loan burdens, credit card debt and job-market disruption from technological change and AI.
Read at Fortune
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