Baby boomers have long been the wealthiest generation in American history, benefiting from an era of postwar economic growth, affordable housing, robust pension plans, and decades of appreciating assets, enabling them to hold more than half the nation’s household wealth well into retirement. Millennials, meanwhile, began adulthood during far harsher economic circumstances, burdened by soaring student debt, persistently high housing costs, stagnant wages, and the setbacks of the Great Recession just as they were launching their careers, all of which significantly slowed their ability to amass savings or build equity in real estate. These challenges created an unusually large wealth gap between the generations, with boomers owning over 50% of national wealth while millennials hold just 9%–10%, a disparity much greater than prior generations experienced at the same age.
Despite these obstacles, recent years have produced some positive shifts for millennials. Their median net worth today has surpassed that of earlier generations at the same life stage, fueled by a strong stock market, increasing home values, and historically high savings rates as millennials enter their prime earning years. Unlike their parents’ era, millennials can't rely on soaring home prices or guaranteed pension plans, so their wealth-building depends on disciplined budgeting, automated investing, maximizing employer retirement accounts, and, for many, finding side hustles or entrepreneurial ventures to supplement income.
Future prospects hinge on several key factors. The anticipated “Great Wealth Transfer” from boomers, expected to total tens of trillions of dollars over the next two decades, could narrow the gap for some millennials who inherit. However, financial stability for the broader cohort requires more than just inheritance: consistent wage growth, continued economic recovery, affordable housing options, and strong financial habits like regular investing and debt management are essential.
Even as millennials accelerate their wealth accumulation—outpacing Generation X and boomers when measured at equivalent ages—true generational parity remains distant for most. Boomers’ decades-long head start, aided by favorable policy and economic winds, still casts a long shadow over the wealth landscape. Nonetheless, with prudent planning, perseverance, and a bit of luck, millennials may gradually close the gap, redefining financial success for a new era while navigating more volatile and uncertain conditions than their predecessors ever faced.
