Generational Divide: Millenials & Boomers: Financial Health

The Young Invincibles recently released a report that looks at the financial health of the Millennials. The Financial Health of Young America “compares the financial health of young Americans in 1989 compared to today’s young adults to reveal major declines across five key factors – income, assets, net wealth, home ownership and retirement savings.  In summary, Boomers had higher incomes, owned more homes, and had twice the net assets that Millennials have today.”

In addition, the report notes the following key findings:

• Millennials have earned a net wealth half that of Boomers at the same age. 

•  Young adult workers today earn $10,000 less than young adults in 1989, a decline of 20 percent.

•             Education attainment still an individual’s best pathway to financial security.

• When Boomers were young adults, they owned twice the amount of assets as young adults.

• Disturbing racial inequality persists and grows. Young African Americans’ median wealth declined by a third since 1989.

•             Student debt blunts some of education’s benefits.

The report makes various recommendations in the following categories: skills, education,  income, employment benefits, housing policies, improving the ability to save and gain wealth,  and improve portable retirement choices.  This is the first of several reports. The full report runs 30 pages and is available here.