How boomers became the richest generation - and why Gen X, Gen Z and millennials may never catch up

By Alessandra Malito

There's never been a generation like the baby boomers - and there probably never will be again

For many members of the baby-boomer generation, personal finances have improved with time and asset appreciation.

Baby boomers seemed to have it easier than other generations: They benefited from the postwar economic boom, had access to affordable higher education and workplace pensions, and found success in real estate and the stock market - and then didn't share the wealth with subsequent generations.

New research has found there's some truth to that narrative.

Boomers have been more financially comfortable than their predecessors during the same times of life, and if the trends continue, they'll be better off than at least one generation after them, too: Generation X.

For many members of the baby-boomer generation, who were born between 1946 and 1964, their personal finances have improved with time and asset appreciation. Baby boomers, the oldest of whom are turning 80 this year, have watched home prices soar after getting into the housing market at young age. And while they've weathered market volatility and downturns, their investments have climbed through the decades. They're also more educated than their older counterparts, which lends itself to higher wages, experts note. And for them, higher education was cheaper: The average cost of tuition at a public college is up more than 300% since 1963.

"A few things worked in boomers' favor," said Richard Fry, senior researcher on the social and demographics trends team at Pew Research Center.

Read: The steep price of housing is forcing Americans to delay marriage, kids and other milestones

By the time the cohort had reached the ages of 58 to 76 in 2022, the median wealth of baby-boomer households was $432,200, compared with $335,900 for the Silent Generation in 2001, and $185,300 for the Greatest Generation before them in 1983, according to a recent Pew Research Center report that adjusted for inflation as of 2024.

Of course, some baby boomers are significantly better off than their peers; those with bachelor's degrees were wealthier than those with lower levels of education. The top 10% of baby-boomer households held almost three-quarters of the $77 trillion in wealth the generation holds, the research showed.

Still, even with more degrees under their belts, the generations younger than the baby boomers are still finding their footing as they plan for retirement. Americans' median retirement savings, when accounting just for people with any retirement savings, was $40,000, according to the National Institute of Retirement Security. When also factoring in American workers without retirement savings, the median amount is $955.

Though boomers' financial well-being blossomed over the decades, their children did not necessarily benefit as a result. Gen X might have it the hardest right now: The so-called slacker generation, born between 1965 and 1980, entered the labor force at a time when defined-benefit pensions began to dissolve and companies placed the responsibility of saving for old age on workers, with the advent of the 401(k).

They've also been caring for both aging loved ones and young or adult children who leave the nest later than the generations before them. Gen X-ers will be retiring around the same time Social Security's trust funds are expected to run out of money, at which point beneficiaries would see a roughly 20% cut to benefits if Congress does not act.

"Gen X is living in the perfect storm for their retirement and overall wealth building," said Catherine Collinson, CEO and president of Transamerica Institute and its Transamerica Center for Retirement Studies.

Millennials and Gen Z-ers, meanwhile, might have brighter futures. The younger the generation, the more likely they are to start preparing for retirement sooner. The median age when baby boomers started saving for retirement was 35, compared with 30 for Gen X, 25 for millennials and 20 for Gen Z, Collinson said. "It offers them a greater time horizon for their savings to compound and grow," she noted.

Still, the future is uncertain, Pew's Fry said. Younger generations have attained higher levels of education than their older counterparts, but it's a guess as to how market volatility, home prices, wage growth and other economic aspects of society could evolve over the next few decades. While their overall better education should work in their favor, Fry said, "it's hard to make predictions about assets and incomes."

-Alessandra Malito

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02-24-26 1716ET