Jan 12, 2026
If you thought the baby boomer generation was exceptionally lucky, the Federal Reserve has data that backs that assumption.
As of mid-2025, American boomers, born between 1946 and 1964, had a combined total wealth of $85.4 trillion (1). That’s nearly triple the size of the U.S. economy (2).
Advertisement
The aggregate fortune of this group dwarfs every other generation. Baby boomers collectively hold 51.1% of the nation’s wealth, compared with just 10.7% for millennials (1).
That gap, analysts say, not only supports a far more comfortable lifestyle for older Americans but also limits younger workers’ ability to build assets of their own. The result is a generation entering midlife with far less financial security.
Here’s why experts say this generational wealth inequality is leaving younger Americans worse off.
Pulling up the ladder
Experts suggest that much of boomer wealth, which is primarily concentrated in the housing and stock markets, was accumulated under very different economic circumstances.
In 1980, when this generation was either starting out or had young families still, home prices were much more affordable. The median home price was roughly $65,000 (3).
Not only did this make homeownership more affordable for boomers, it also allowed them to save money to invest in the stock market, which was also relatively cheaper at the time. The S&P 500 traded at a price-to-earnings (P/E) ratio of approximately 7.4 in 1980, meaning investors were paying $7.40 for every $1 of earnings generated (4).
Today, the median home price sits at $410,800 (5), and the S&P 500 trades at a P/E ratio of about 31 (4). In other words, millennials and Gen Z face much higher barriers to entry, while dealing with a higher cost of living that squeezes their ability to save.
Advertisement
And the situation is unlikely to improve anytime soon.
"One critical thing boomers and older generations have also done is pull up the housing ladder behind themselves by adopting NIMBY [not in my back yard] tendencies over the last several decades," Jake Krimmel, senior economist at Realtor.com, said recently (6).
According to Krimmel’s analysis, boomers held 30% of the nation’s total wealth and 40% of its real estate assets in 1995. “It really is the case that boomers have been on top for their whole adult lives, leaving other generations behind and worse off," he said.
If you’re young, the odds might be stacked against you. But that doesn’t mean you can’t try to tilt them in your favor.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
How to improve your odds
Despite the structural headwinds, there are still some ways ordinary young Americans can get ahead.
One of the most effective steps is investing in high-value skills that lead to well-paid careers.
Advertisement
According to the Bureau of Labor Statistics, the fastest-growing six-figure occupations projected through 2034 include nurse practitioners, data scientists, information security analysts, medical and health services managers, actuaries, physician assistants, computer and information research scientists and postsecondary health specialties teachers (7).
Young Americans can also sidestep the student debt crisis by pursuing lucrative careers in skilled trades. Vocational schools and short apprenticeship programs can provide the training needed for high-paying roles such as power plant operator, elevator technician and construction inspector, according to Indeed (8).
By avoiding debt and boosting your income, you can create some wriggle room in your monthly budget to start saving and investing. Stocks and real estate may be more expensive than they used to be in the 1980s or 1990s, but that doesn’t mean they won’t continue to appreciate in value in the years ahead.
Finding a partner and delaying childbirth can also boost your chances of financial success. The so-called DINK, or dual income, no kids lifestyle can give you extra disposable income to pay off debt faster or invest more aggressively. Sharing major expenses, such as rent or mortgage, is another financial perk of this lifestyle choice.
A combination of these strategies should put you ahead of your peers and maybe even in the same league as the average baby boomer.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Board of Governors of the Federal Reserve (1); Federal Reserve Bank of St. Louis (2), (5); United States Census Bureau (3); Mltpl.com (4); Realtor.com (6); U.S. Bureau of Labor Statistics (7); Indeed (8)
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
