Aging Americans Accumulate Wealth while Younger Generations Struggle
Americans who belong to the baby boomer generation are not only growing older and wiser but also wealthier, while younger generations are finding it increasingly challenging to keep up. According to The Heritage Foundation economist E.J. Antoni, young individuals who have not had adequate time to save money and invest in property are not experiencing the same level of wealth increase. However, existing homeowners are reaping significant benefits.
Age and Wealth Distribution
Federal Reserve data from Q3 2023 reveals that Americans over the age of 55 now possess 72% of the nation’s wealth. The wealthiest individuals above 70 hold 30% of all wealth, with their wealth seeing the most substantial gain over the past year, amounting to $3.57 trillion. Furthermore, the aging population has grown, with an additional 2.3 million people over the age of 70 in the U.S. since 2019.
Struggles of Younger Generations
In contrast, younger generations, including Gen X, millennials, and Gen Z, are facing stagnant growth, as indicated by the Fed data. Only 25% of American households aged 40 to 54 possess 20% of the nation’s wealth, while individuals under 40 own less than 7%. Despite these two groups accounting for 53.3% of all households, their share of the wealth stands at just 27%.
Factors Contributing to Wealth Disparity
Gerri Willis, reporting on “Varney & Co.,” suggests that the strong stock market and rising housing valuations in the post-COVID era have primarily benefited older Americans. Additionally, the older generation has had more time to reap the rewards of stock investments and homeownership.
Economic Concerns of Younger Voters
A recent FOX poll indicates that younger voters are increasingly gravitating towards former President Donald Trump over President Biden, with a 13-point difference. The economy emerges as one of their primary concerns heading into 2024. Garrett Ventry, a former Senate Judiciary Committee senior adviser, explains that young individuals face challenges such as inflation, financial instability, rising credit card debt, and insufficient savings for emergencies.
A Political Realignment
Ventry suggests that President Trump is experiencing a political realignment as younger voters turn back to him due to dissatisfaction with the current economy. They appreciate Trump’s handling of the economy, better mortgage rates, and lower inflation. The economy, along with inflation, foreign policy, and potential personal corruption in the impeachment inquiry, compounds the issues facing President Biden.
In conclusion, baby boomers are witnessing significant increases in wealth, while younger generations struggle to keep up. The widening wealth gap raises concerns about economic inequality and the financial future of the younger population.