​Baby Boomers Have Never Been So Wealthy, Yet Many Aren’t Feeling the Booming Economy. Here’s Why. 

Personal FinanceMinerva Studio and bernie_photo from Getty Images SignatureChris MacDonaldThis post may contain links from our sponsors and affiliates, and Flywheel Publishing may receivecompensation for actions taken through them. Baby boomers now hold an unprecedented share of the nation’s wealth, with those born during this specific period now officially holding approximately 51.8% of U.S. wealth as of the early 2020s. That’s more than half the wealth of the entire U.S. economy, despite this demographic representing around 21% of the overall U.S. population. And while those who fall into the baby boomer generation (the born between 1946 and 1964) technically have more wealth as a percentage of the population than any other generation, many may not be experiencing the robust economic prosperity personally. Indeed, averages tell only part of the story, and there are plenty in each generational group who have their own individual struggles.Let’s dive into why so many baby boomers may not feel as wealthy as they actually are, and what’s at the root of this paradox.Key Points About This Article:With tens of thousands of baby boomers aging into this demographic group each day, more attention is being paid to the financial health of this particular group.
Despite holding the majority of the country’s wealth, many in this group don’t feel as wealthy as they are – here are some of the reasons why.
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Uneven Wealth Accumulation Among Baby BoomersESB Professional / Shutterstock.comA baby boomer putting money into a piggy bankFollowing the Second World War, baby boomers benefited en masse from the economic boom that followed, with the U.S. coming out of the war as the true undisputed economic powerhouse of the world. With plenty of land and resources to build out a growing economy (which was much broader in scope and included much more manufacturing), workers were able to see their productivity gains correlate nearly on a 1:1 basis with wage gains, a trend that’s since slowed in recent decades.With capital gains tax decreases in recent decades and a shift toward the financialization of key markets, asset owners (mainly baby boomers) have managed to greatly outpace previous generations in terms of wealth accumulation by age 65, holding about 50% more wealth than previous generations in the past. That said, this prosperity hasn’t been evenly-distributed, and has caused concern for many baby boomers who now have millennial children who may need assistance. With many in the younger generations experiencing overwhelming student debt, escalating housing costs, and stagnant wages, many baby boomers feel the need to fill that gap. This can lead to financial stress as budgets become strained tied to current or future healthcare expenditures (which have also risen faster than the pace of inflation for a long time). To