Baby boomers could pass on $53 trillion to the next generation. Here’s a look at their average net worth and expert tips for protecting it – Yahoo Finance

As the oldest working generation, baby boomers have one foot in the workforce and another in retirement. Time and favorable economic conditions have made it easier for this generation to build wealth compared to younger generations.
A 2022 study projects that wealth transferred through 2045 will total $84.4 trillion—$72.6 trillion in assets will be transferred to heirs, while $11.9 trillion will be donated to charities. Greater than $53 trillion will be transferred from households in the Baby Boomer generation, representing 63% of all transfers.
Baby boomers are the generation of workers born between 1946 and 1964. The oldest members of this generation are in their mid-70s, well into their retirement years. The youngest members are still a few years away from exiting the workforce altogether.
Members of this generation have an average median net worth between $200,000 and $255,000, according to the Federal Reserve’s 2019 Survey of Consumer Finances. Their mean net worth sits roughly between $970,000 and $1.2 million.
The average baby boomer’s net worth is significantly higher compared to other generations. Gen Zers’ average net worth sits at $76,000. The average Millennial over age 35 stands at over $400,000. Those in Generation X have average net worths between $400,000 and $833,000, and older generations including Baby Boomers and the Silent Generation have average net worths that creep into the millions.
View this interactive chart on
Several factors have played a role in this generation’s ability to build and grow their net worths. Boomers have benefitted from a combination of time, societal norms, and stronger economic conditions compared to younger generations.
Compared to younger generations, boomers were more likely to marry and marry at a younger age. According to Pew Research, only 44% of Millennials were married in 2019, compared with 53% of Gen Xers, 61% of Boomers and 81% of Silents at the same age.
“With Boomers, as they married young there were often two wage earners in a household so net worth increased. Millennials are often living on one salary as they might not marry young or marry at all,” says Molly Ward, Financial Professional with Equitable Advisors based in Houston Texas.
As the oldest working generation, boomers have had more time to build their wealth and recover from any economic downturns they’ve faced. And it’s paid off. Census data shows that baby boomers are nearly nine times wealthier than millennials.
“Monthly pension benefit payments along with monthly social security payments for retirees of these generations provided(s) predictability for spending during retirement years while their home equity and stock market portfolios might not have been tapped and continued to compound over many years,” says Ward. “However, high interest rates were a real thing while boomers were building their wealth. While interest rates have leaped recently, those generations saw them much higher than they have been in the adult lifetimes of Gen X and Millennials.”
Homeownership is touted as a key step in building lasting wealth and baby boomers were able to hit 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 only 37% of millennials between the ages of 25 and 34 own homes.
While baby boomers’ path to building wealth has been a different trajectory compared to other generations, there are still ways for boomers to continue to grow their net worths in their later years.
Pay down outstanding debt. Your net worth is the value of what you own, minus what you owe. Eliminating liabilities in the years before you retire and begin living off of your retirement income is key to not only protecting your net worth as you age, but also helping you avoid dipping into your retirement savings and having to live off of less.
Max out your retirement account. If you haven’t yet retired, make it a priority to contribute the maximum amount to your retirement savings accounts. By the time you’ve reached your 60s, you should be saving at least 8 times your salary if you hope to retire comfortably and maintain your lifestyle. Some retirees choose to live more frugally in their later years, however, it’s impossible to predict if you’ll have high healthcare costs or unforeseen expenses. Saving more than you think you need is key to ensuring that you don’t have to take on debt in your later years and diminish your net worth.
View this interactive chart on
Create a post-retirement budget. Think carefully about the income you’ll have available in your later years and how you’ll stretch that money so that it sustains you throughout your golden years. “In your 70s and beyond, the focus usually shifts to budgeting and portfolio withdrawal. Retirees can either withdraw a set amount of money each month or withdraw a percentage of the portfolio balance each month,” says Paul Deer, CFP and Vice President, Advisory Service at Personal Capital. “With the first strategy, the amount of income is more predictable, which makes budgeting easier. But you generally have more control over the portfolio’s overall drawdown and potential longevity with the percentage method.”
This story was originally featured on
More from Fortune:
People who skipped their COVID vaccine are at higher risk of traffic incidents
Elon Musk says getting booed by Dave Chapelle fans 'was a first for me in real life' suggesting he's aware of building backlash
Gen Z and young millennials have found a new way to afford luxury handbags and watches—living with mom and dad
Meghan Markle’s real sin that the British public can’t forgive–and Americans can’t understand
Returns released by a House committee show provisions of the tax code that were used while Donald Trump was in the White House.
The site was under construction in the summer of 2022.
In his final days in office, Republican Gov. Doug Ducey is shaping the future of the Arizona Court of Appeals with six new appointments.
In today's video, Jose Najarro and Nick Rossolillo compare the manufacturing strategies of Intel (NASDAQ: INTC) and Taiwan Semiconductor Manufacturing (NYSE: TSM). While one company is aggressively expanding its capacity, the other is taking a more cautious approach.
The S&P 500 index dropped 19% in 2022, but the forward price/earnings multiple is still above the historical average.
In fact, I have several thousand dollars in a high-yield savings account. The money I have in there is for my emergency fund, as well as for big purchases I am saving up for and that I plan to make within the next year or two. It may seem odd not to want to have more money saved, but there are four really good reasons why I keep my account balance as low as I can while still being financially responsible.
Furkan Korkmaz (Philadelphia 76ers) with a 2-pointer vs the Oklahoma City Thunder, 12/31/2022
The U.S. Treasury Department will now allow electric vehicles that are leased to qualify starting Jan. 1 for up to $7,500 in clean vehicle tax credits.
Police have arrested a suspect in the brutal murders of four University of Idaho students last month in Moscow, Idaho. (12-30-22)
The financial media has been focused on the reopening of China trade for several weeks now. The short-sighted view of things is that demand will bounce back and Chinese businesses will respond positively and equities will be a great buy here. The bigger picture is that the Chinese high growth economy is slowing as Chinese and global liquidity continue to contract.
President Joe Biden’s administration on Friday finalized regulations that protect hundreds of thousands of small streams, wetlands and other waterways, repealing a Trump-era rule that federal courts had thrown out and that environmentalists said left waterways vulnerable to pollution. The rule defines which “waters of the United States” are protected by the Clean Water Act. For decades, the term has been a flashpoint between environmental groups that want to broaden limits on pollution entering the nation's waters and farmers, builders and industry groups that say extending regulations too far is onerous for business.
Don't do what Donald Trump did in his federal tax returns. That's to avoid an IRS audit, financial advisors say amid release of the Trump tax returns.
A lot of employers say they have to pay more than minimum wages to recruit and hold on to restaurant servers, hotel housekeepers, retail store clerks and other employees.
Ever since Rian Johnson’s acclaimed “Knives Out” sequel “Glass Onion” debuted on Netflix shortly before Christmas, social media users have spent a lot of time debating the Elon Musk of it all. Google “Glass Onion” and “Elon Musk” and you’ll get dozens of articles about how the “Knives Out” sequel is a “veiled dig” at […]
Are you on the upper rungs of the class ladder?
If you have $100,000 to invest, you have many options to consider. We break down how to invest $100,000 to earn returns for your future goals.
Turns out wealth isn't always health.
The federal government will allow you to save nearly 10% more for retirement in 2023. Only 14% of participants saved the maximum amount in 2020. Not everyone needs that kind of money put away for retirement.
We all pay taxes. So why not get some of that money back?
There were few places for investors to hide in this year’s bloodbath, but those exposed to the tech-heavy Nasdaq Composite index undoubtedly had it the worst.


Leave a Comment