Generational and Age Household Wealth Trends and Wealth Inequality

Average Real Wealth by Generational Age

SOURCES: Distributional Financial Accounts and Institute for Economic Equity calculations.

This figure shows average real family wealth of three different generations during their young- to mid-adult years. Values are centered on the average age for the generation. For example, the average age for younger Americans (millennials and Gen Zers; those born in 1981 or later) in the second quarter of 2022 was 33, and Gen Xers (born 1965-1980) had an average age of 33 in the third quarter of 2005. While trailing Gen Xers for the beginning of their adult lives, younger Americans have closed the gap over the past five years (as of the most recent data). However, in the most recent quarter, they have fallen behind again.

Average Real Wealth by Age and Generation, Second Quarter of 2022

SOURCES: Distributional Financial Accounts and Institute for Economic Equity calculations.

NOTE: The average age is 33 to 34.

Younger Americans (millennials and Gen Zers) had lower family wealth, on average, than Gen Xers did at the same age (33) and were below boomers at age 34, though their ages do not yet overlap in the data. In the second quarter of 2022, the average wealth of younger Americans was 11.2% below Gen Xers’ wealth at the same age (the third quarter of 2005).

Cumulative Changes in Average Real Household Wealth by Age Group

SOURCES: Distributional Financial Accounts and Institute for Economic Equity calculations.

NOTE: Vertical bars indicate recessions.

The first two figures underscore a generational wealth gap. This figure highlights increasing inequality across the life cycle. Despite recent weakening, middle-aged and older groups today have much more wealth than same-age families did in the past, signaling a steeper life cycle of wealth on average. Despite this trend, younger families’ average wealth has grown more rapidly since the beginning of the pandemic. For older families (ages 55 and older), most of their gains from the past two years have been eroded over the past two quarters.