By mid-2020, millennials would account for 35% of the workforce, the highest proportion of any generation. Despite this, millennial wealth accounted for less than 5% of total US wealth at the time.
So according to Forbes, the median net worth gap between individuals aged 60 and up (primarily Boomers) and even those aged 40 and up (Millennials and Gen Z) has nearly doubled since the 1960s and 1970s. During the 1980s, most baby boomers made the majority of their earnings by making an investment in stocks and real estate. Just like Millennials and Generation Z have witnessed at least two “once-in-a-lifetime” worldwide catastrophes, experts think Boomers experienced a once-in-a-lifetime economic mobility during the 1980s. Credit ratings appeared for the first time in 1989, enabling Boomers to invest in house building and assets even before existing system occurred.
The Wealth Divide has Widened
Of course, during the Great Recession and its aftermath, everyone was cash-strapped. However, once recovery began, millennials experienced a slower rate of recovery. According to studies, millennials are still earning 7% less than they should, whereas wages for people over 50 have fully corrected. As a result, millennials have become more conservative with their savings as they prepare for the worst-case scenario.