One Generation Is The Richest To Ever Live & It’s Unlikely Any Other Will Catch Up, Experts Say
Depiction Images | Shutterstock Each generation likes to brag about the things they have that others didn’t, but it seems like one generation really can claim to be the richest in history, according to a report from MarketWatch.
There are many generations yet to come, but economic experts look at boomers and see a level of wealth created by a perfect storm of favorable events that is unlikely to be replicated. It seems like all other generations are destined to look at this cohort in envy while they scrimp and save, which isn’t really good news for the world at large.
Baby boomers are definitely the richest generation to ever live, and they probably always will be.
Younger generations like to perpetuate the idea that boomers had everything easy, and they simply don’t understand the hardships today’s young adults face. While this is really an overgeneralization, it also might not be completely false.
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Writing for MarketWatch, Alessandra Malito said, “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.”
Life hasn’t been perfect for baby boomers by any means, but this combination of education that didn’t send them into severe debt, affordable housing, and workplace benefits is unlikely to happen again. Data shows that boomers had more money in 2022 than the silent generation and the greatest generation did at roughly the same age.
Boomer wealth impacts Gen X especially hard.
Malito noted that pensions are largely a thing of the past, and generations that come after boomers are responsible for their own retirement. Also, Gen X will be facing retirement at just about the same time that Social Security funds could run dry. According to a recent Newsweek report, Social Security could actually run out of money even sooner than previously expected.
Some Gen Xers are the children of boomers, and this may be contributing to their financial strain as well. This generation is often caught in the middle of caring for both their parents and struggling adult children. A study from Carewell found that 71% of Americans between the ages of 35 and 60, who include Gen X, are acting as caregivers for their children and parents.
For all the talk we hear about student loan debt nowadays, some may be surprised to learn that the generation impacted the most by this problem is actually Gen X. The Education Data Initiative reported that Gen Xers have the “highest average student loan balance,” with most owing about $44,240. It’s just one more thing that makes life hard for this generation.
Boomers could help out younger generations with their own wealth, but that seems unlikely.
Catherine Collinson, the CEO and president of Transamerica Institute and Transamerica Center for Retirement Studies, noted that millennials and Gen Z may be better off than Gen X because they’re more likely to start saving for retirement at a younger age.
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However, if they’re counting on an inheritance from their parents or grandparents to help them, they’re out of luck. A Schwab survey of Americans with over $1 million in assets found that just 34% of boomers who fit that category want to share their wealth with the next generation, while 45% said they want to spend their money on themselves while they’re still alive.
The cost-of-living crisis just continues to worsen, so younger people will have to contend with high prices and wages that can’t keep up, as well. The economy hasn’t shown any signs of moving in a significantly better direction for quite some time now, so it’s improbable that young adults will see a huge improvement before they reach retirement age. Maybe some future generation will catch the same elusive success that boomers had, or maybe they truly will be one of a kind.
Mary-Faith Martinez is a writer with a bachelor’s degree in English and Journalism who covers news, psychology, lifestyle, and human interest topics.
