(NEXSTAR) — Millennials areoften stereotypedas lazy, entitled, and less wealthy than baby boomers. But the younger generation is not uniformly worse off, a new study claims.
They are, however, facing a widening wealth gap.
“The wealthiest millennials now have more than ever, while the poor are left further behind,” said the study’s lead author Rob Gruijters, an associate professor of education and international development at England’s University of Cambridge.
Millennials in their mid-30s are more likely to work low-paying service jobs and live with their parents, researchers found, but those with affluent middle-class lifestyles often have more wealth than boomers did at the same age.
The study, published in the American Journal of Sociology in September 2023, examined the work and family life trajectories of more than 6,000 boomers and 6,000 millennials in the U.S. It compared how these life decisions impacted their wealth by the time they turned 35.
Researchers from the University of Cambridge in the UK, Humboldt University in Germany, and Sciences Po University in France analyzed data from theNational Longitudinal Survey of Youth, a program of the U.S. Bureau of Labor Statistics, for the study.
Here are some of their key findings:
- Wealth:Millennials at the 90th percentile of wealth distribution in the U.S. possessed about 20% more wealth than boomers did at 35 ($457,000 vs. $373,000). However, the median millennial had 30% lower wealth than the median boomer at that age ($48,000 vs. $63,100).
- Career:Boomers were more likely to land high-status jobs, like lawyers or surgeons. Around 17% of boomers moved into “prestigious” career paths after graduating college, whereas just 7.3% of millennials did so.
- Homeownership:About 62% of boomers had become homeowners by 35, contrasting with the 49% homeownership rate among millennials at that age. Additionally, 10% of millennials lived with their parents at 35, compared to only 6% of boomers.
- Marriage:Millennials tended to postpone marriage. Approximately 27% of boomers got married and had children earlier, while only 13% of millennials followed a similar path.
- Debt:Millennials were also more likely to be in debt: 68% held any kind of debt at 35, compared to 43% of boomers.
- Net worth:About 14% of millennials had negative net worth by 35, which means their debts exceeded their assets, compared to only 8.7% of boomers.
Researchers claim the distribution of wealth among millennials is so uneven because the economic rewards for middle and upper-class lifestyles have increased, while those for the working class have either remained the same or declined.
“Individuals with typical working class careers, like truck drivers or hairdressers, used to be able to buy a home and build a modest level of assets, but this is more difficult for the younger generation,” said Gruijters.
According to the National Association of Realtors, the median age of first-time home buyers in today’s market is 36 — the oldest since the agency started collecting this specific data in 1981.
The NAR said that even though millennials are currently the largest American generation, they saw a “shrinking share” of buyers in the housing market last year. The agency said low inventory, high interest rates, and rising home prices are factors that could turn away potential buyers.
As for the wealth gap, researchers said progressive measures like wealth taxation, universal health insurance, a higher minimum wage and access to stable housing may help tighten it.
“We need to make it easier for those who are currently being left behind to accumulate wealth in the first place,” said study co-author Anette Fasang, a professor of microsociology at Humbolt University. “A slow and tentative approach won’t suffice. Significant action is needed to build a more equal society, where more people can experience some form of prosperity.”
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FAQs
It found that Millennials were statistically more likely to work in low-paid service jobs or live with their parents as they entered middle age. Most of these individuals were economically worse off at 35 than Baby Boomers with comparable careers and lives.
Which generation has it the hardest financially? ›
Gen Zers are having a harder time making ends meet, let alone building wealth. Roughly 38% of Generation Z adults and millennials believe they face more difficulty feeling financially secure than their parents did at the same age, largely due to the economy, according to a recent Bankrate report.
Are millennials really worse off than boomers? ›
But the research, published by the University of Chicago Press, finds that positioning millennials as solely worse off than the generations before them is slightly misleading. When looking at baby boomers—currently aged 59 to 78—the researchers found economic outcomes a bit more mixed.
Which generation holds the most wealth? ›
In the fourth quarter of 2023, 51.8 percent of the total wealth in the United States was owned by members of the baby boomer generation.
Are millennials less wealthy? ›
According to the study, the average millennial has 30% less wealth at the age of 35 than baby boomers did at the same age.
Which generation is struggling the most? ›
Not just growing pains: Gen Z reports suffering more than other generations did at their age. A new study from Gallup shows a crushing youth mental health crisis, because teens are more tuned in than ever.
What generation is the least financially literate? ›
However, among all of the generations, it's Gen Z that is proven to have the lowest financial literacy levels. According to the New York Post, Gen Z will represent 27% of the workforce by 2025.
Who are the unhealthiest generation? ›
The report found that millennials had substantially higher diagnoses for eight of the top 10 health conditions than Generation X, and based on their current health status, millennials are more likely to be less healthy when they're older, compared to Gen Xers.
Which generation quits the most? ›
Gen Z workers also report the highest rates of wanting to quit their jobs within the last three months compared to all other generations. In addition to feeling the least engaged in work, Gen Z also finds their responsibilities uninspiring.
Why are millennials struggling? ›
But on many fronts, Millennials are struggling. Incarceration rates among Millennial young adults are dramatically higher than they were when members of the Silent Generation and Baby Boom were the same age. The federal minimum wage hasn't risen since 2009, but inflation and cost of living have.
Millennial and generation X cohorts are likely to face the highest working-age poverty rates to date, with almost a quarter of the 1991-95 cohort expected to be in relative poverty in their late 20s.
What generation is the most prosperous? ›
Baby boomers have the highest household net worth of any US generation. Defined by the Federal Reserve as being born between 1946 and 1964 (currently in the ages between 59 and 77), baby boomers are in often in the sunset of their career or early into retirement.
Which generation is the most generous? ›
As one of the most philanthropic generations, Baby Boomers have had a considerable impact on the charitable sector. Having lived through significant historical events, many Boomers feel a sense of responsibility to give back to society.
Are millennials less materialistic? ›
While the previous generations may have valued material possessions as a sign of success, millennials choose experiences that they can enjoy with friends or family. Millennials are more likely to use social media platforms to document their experiences as well as discover new ones.
Do millennials have a lot of debt? ›
Americans — particularly Millennials and those with lower incomes — are becoming increasingly overextended financially: Credit card and auto loan delinquencies have not only surpassed pre-pandemic levels, they're the highest they've been in more than a decade.
What is the average wealth of a millennial? ›
New CAP analysis of that data shows that the average inflation-adjusted wealth of households where the household head was under 40 grew $85,000, or 49 percent, between Q4 2019 and Q4 2023—from $174,000 to $259,000. As a point of comparison, the average for households of all ages was $1.1 million per household.
Which generation is most in debt? ›
According to data on 78.2 million Credit Karma members, members of Generation X (ages 43 to 58) carry the highest average total debt — $61,036.
Which generation cares most about money? ›
Aligning on money is all the more pressing for younger generations, who are earlier on in their relationships and careers—nearly half (49%) of Gen Zers view financial compatibility as more important than physical compatibility. That's compared to 40% of millennials, 35% of Gen Xers, and 30% of baby boomers.
