Wealth across generations in the US has shifted sharply in recent years, with older households building significant gains while younger adults have seen declines. Fortune reported wealthy baby boomers grew 38 percent richer over the last three years, a trend the outlet labeled a metastasizing problem. The shift follows broader federal data showing large differences by age.
The Federal Reserve, in its Survey of Consumer Finances analysis, found families headed by someone age 75 or older experienced a 37 percent rise in inflation‑adjusted median net worth between 2022 and 2025. By contrast, families headed by someone under age 35 saw median net worth fall 23 percent over the same interval. The Fed noted retirement income growth appears to play a key role in the oldest households' improvement.
The Fed's report showed smaller changes for other age groups. Median net worth rose 5 percent for families ages 35 to 44 and 3 percent for those ages 55 to 64. Meanwhile median net worth declined 6 percent for ages 45 to 54 and 4 percent for ages 65 to 74. The Fed emphasized that its comparisons use group medians across survey years rather than tracking the same families over time.
Survey data from Principal Financial Group, provided to CNBC, underscored differences in financial confidence across generations. Fifty‑three percent of baby boomers said they felt able to manage their debt, compared with 42 percent of Generation X and millennials and 39 percent of Generation Z. Boomers also reported the highest satisfaction with their financial situation at 41 percent, and 52 percent said they had enough financial knowledge to make confident decisions.
Implications For Spending And The Economy
Economists and industry researchers say the generational wealth gap helps explain resilient consumer spending even as many younger households struggle. Ed Yardeni of Yardeni Research described the pattern as a "G‑shaped economy" that reflects age more than simple income divisions. He said older Americans are living longer and spending on themselves and family, and that accumulated investments and home equity boost their spending power.
Research from the JPMorganChase Institute found investment withdrawals have become a larger part of household finances. For the three months ending April 2026, 8.2 percent of individuals moved money from investment holdings to checking accounts, up from 4 percent in the same period in 2019. Net transfers from investments to checking represented 6.8 percent of spending in April 2026, versus 3.5 percent in April 2019.
The institute reported withdrawals rose most for older and higher‑income groups. Among individuals age 65 and older in the top 10 percent of income earners, 37.3 percent made net withdrawals from investment accounts in 2025, up from 24.5 percent in 2019. Those flows equaled 14.9 percent of the group's spending in 2025, compared with 8 percent in 2019. Chris Wheat of the institute said investment flows are becoming part of many households' day‑to‑day finances.
Experts cautioned that the generational divide does not mean every boomer is secure or every younger adult is struggling. Still, the combination of Fed, survey, and banking data suggests older households' wealth and retirement income growth are supporting consumer demand in ways that may mask financial strain among younger cohorts.
