Average Baby Boomer Wealth: The wealth of the oldest generation is in the millions.

A 2022 study predicts that by 2045, assets transferred will total $84.4 trillion – $72.6 trillion in assets will be transferred to heirs, while $11.9 trillion will Dollars donated to charities. More than $53 trillion is remitted by baby boomer households, accounting for 63% of all remittances.

Average net worth for baby boomers

Baby boomers are the working-class generation born between 1946 and 1964. The oldest members of this generation are in their mid-70s and are well into retirement age. The youngest are still a few years away from leaving the workforce.

Members of this generation have an average median net worth of between $200,000 and $255,000, according to the Federal Reserve’s 2019 Survey of Consumer Finances. Their median net worth is roughly between $970,000 and $1.2 million.

How does the average baby boomer’s wealth compare to other generations?

The net worth of the average baby boomer is significantly higher compared to other generations. The average Gen Zer net worth is $76,000. The average millennial over 35 is over $400,000. Those of Generation X have average net worths ranging from $400,000 to $833,000, and older generations, including Baby Boomers and the Silent Generation, have average net worths in the millions.

What Shaped the Wealth and Financial Future of the Boomer Generation?

Several factors have played a role in this generation’s ability to build and grow their wealth. Boomers have benefited from a combination of time, societal norms, and stronger economic conditions compared to younger generations.

Certain societal norms made it easier for boomers to increase their wealth

Compared to younger generations, Boomers were more likely to marry and marry at a younger age. According to Pew Research, just 44% of Millennials were married in 2019, compared to 53% of Gen Xers, 61% of Boomers, and 81% of Silents of the same age.

“For boomers, because they married young, there were often two wage earners in a household, so net worth increased. Millennials often live off a salary since they may not marry young or marry at all,” says Molly Ward, finance expert at Equitable Advisors, based in Houston, Texas.

Baby boomers have time on their side

As the oldest working generation, Boomers have had more time to build their wealth and recover from economic downturns they have faced. And it has paid off. Census data shows that baby boomers are almost nine times richer than millennials.

“Monthly pension payments, along with monthly Social Security payments for retirees of these generations, provided predictability for spending during the years of retirement while their stock and stock market portfolios may have been untapped and continue to grow for many years,” says Ward. “However, high interest rates were a real thing while the boomers were building their fortunes. While interest rates have skyrocketed lately, these generations saw them much higher than they were when Gen X and Millennials were alive.”

Boomers benefited from an affordable housing market

Home ownership is touted as an important step in building lasting wealth, and baby boomers have been able to reach this financial milestone earlier than younger generations. According to the Berkley Economic Review, 45% of baby boomers were able to buy their first home between the ages of 25 and 34, compared to just 37% of millennials between the ages of 25 and 34 who own a home.

3 ways baby boomers can grow and protect their wealth

While baby boomers’ path to wealth accumulation was a different path compared to other generations, there are still opportunities for boomers to continue growing their wealth in their later years.

1. Settle outstanding debts. Your net worth is the value of what you own minus what you owe. Eliminating liabilities in the years before you retire and living on your retirement income is key to not only protecting your wealth in retirement, but also helping you avoid investing in your retirement savings and living on less to have to.
2. Maximize your retirement account. If you haven’t retired yet, your priority should be to put the maximum amount into your retirement savings account. By the time you hit your 60s, you should be saving at least eight times your salary if you hope to retire comfortably and maintain your lifestyle. Some retirees choose to live more frugally in their later years, but it’s impossible to predict whether you’ll face high healthcare costs or unforeseen expenses. Saving more than you think you need is key to ensuring you don’t go into debt and drain your wealth in your later years.

3. Create a retirement plan budget. Think carefully about the income that will be available to you in your later years and how you will stretch that money to support you during your golden years. “In your 70s and beyond, the focus usually shifts to budgeting and portfolio retirements. Retirees can withdraw either a set amount of money each month or a percentage of the portfolio balance each month,” said Paul Deer, CFP and vice president, Advisory Service at Personal Capital. “With the first strategy, the level of revenue is more predictable, which makes budgeting easier. But in general, the percentage method gives you more control over the overall portfolio loss and potential longevity.”