The Baby Boomer generation, those born between 1946 and 1964, has proven to be the wealthiest in US history. According to recent data from the Federal Reserve, this group concentrates assets exceeding $85 trillion, a figure that represents more than half of the country’s total household wealth. This phenomenon of accumulation, resulting from exceptional economic and political circumstances, raises serious questions about the capabilities of younger generations to repeat this success.
Boomers, who today make up about one-fifth of the U.S. population, They far exceed the wealth ratio of later generations, such as Generation X and Millennials. Investopedia It is highlighted that this group holds 51.4% of household wealth in the first half of 2025.
The economic power of boomers is explained by the unique context in which they entered the labor market. Olivia Mitchell, professor of economics at the University of Pennsylvania, noted that this group “entered the labor force during decades of strong economic growth, high productivity, and relatively high real wages.”
In addition to the favorable wage environment, this generation benefited from bullish stock markets during the 1980s and 1990s, as well as the strong economic recovery that followed the Great Recession. The context of his youth included the low cost of a college education and health, in addition to fiscal policies that favored capital accumulation, such as reducing taxes on profits.
Getting to his home was a major factor in building this legacy. After World War II, programs such as the GI Bill made it easier to purchase affordable homes. Boomers bought homes at younger ages and at times when prices were much lower.
he The Washington Post It embodies that The median home price in 1976 was about $42,800. ($242,400 adjusted for inflation), a far cry from the $410,800 recorded in 2025. This difference has allowed boomers to benefit from decades of rising property values. Today, one-third of his assets correspond to the capital gains of his principal residence.
Another driver of wealth was the change in retirement plans. As defined benefit plans disappeared, boomers adopted defined contribution plans, such as 401(k), increasing their exposure to the financial markets and boosting their retirement savings.
Generations succeeding the baby boomers face a more difficult financial outlook. People under the age of 40 lost their gains in real estate and financial assets. For example, Professor Jeremy Nye of Columbia University points out that Millennials had twice as much debt by age 30 as Boomers at the same age.
Stagnant wages, rising housing and education prices, and extreme market volatility have made it difficult for young people to save and invest. The Great Recession of 2008 had a full impact on his early years of work. According to Nye, if in 1940 the probability that a person would earn more than his or her parents was 90%, today that probability is merely a matter of chance.
Consumer preferences have also changed, with many young people preferring to rent or wait for the perfect home, unlike baby boomers. Who prioritized early acquisition From the first house as a base to climb the market.