Typically, young families start out with little (or perhaps negative) wealth, accumulate more wealth during middle-age, then peak and begin to draw down on their wealth in old age. Older people would naturally be expected to have more wealth than younger people, given this path.
However, the wealth gap between the old and young has widened considerably. And the Baby Boomer generation, which is currently entering retirement en masse, are likely to be less wealthy than the generation before them.
In this video, William Emmons, Bryan Noeth and Ray Boshara—of the St. Louis Fed’s Center for Household Financial Stability—discuss their findings on the connections between age and wealth. They present the findings of their paper “Age, Birth Year and Wealth,” which is the final part of their “Demographics of Wealth” series. Their research on the effects of race/ethnicity and education are also available.
On the Economy
Get notified when new content is available on our On the Economy blog.
About the Blog
The St. Louis Fed On the Economy blog features relevant commentary, analysis, research and data from our economists and other St. Louis Fed experts.
Views expressed are not necessarily those of the Federal Reserve Bank of St. Louis or of the Federal Reserve System.