Older Americans' wealth growth outpaces youth decline in Fed data
Families headed by individuals age 75 or older recorded a 37% increase in inflation-adjusted median net worth between 2022 and 2025, according to the Federal Reserve's Survey of Consumer Finances report released Friday. The data highlights a widening gap in household finances, as families headed by those under 35 saw their median net worth decline by 23% over the same period.
Families headed by individuals age 75 or older recorded a 37% increase in inflation-adjusted median net worth between 2022 and 2025, according to the Federal Reserve's Survey of Consumer Finances report released Friday. The data highlights a widening gap in household finances, as families headed by those under 35 saw their median net worth decline by 23% over the same period.
Economist Ed Yardeni, president and chief investment strategist at Yardeni Research, argues that this generational divide offers a clearer explanation for consumer spending resilience than income-based models. He describes the current environment as a "G-shaped economy," noting that age is a more significant factor than the traditional "K-shaped" distinction between rich and poor households. Yardeni stated that baby boomers are living longer, staying healthier, and utilizing accumulated assets such as retirement savings and home equity to support their spending.
A survey conducted by Principal Financial Group supports this view. The study, which included 1,000 respondents between April 17 and May 16 with a margin of error of plus or minus 3.1 percentage points, found that 53% of baby boomers felt able to manage their debt. This figure exceeded the 42% reported by Generation X and millennials and the 39% reported by Generation Z. Boomers also reported the highest satisfaction with their current financial situation at 41%, compared with 29% for Generation X, 36% for millennials, and 34% for Generation Z.
Teresa Hassara, senior vice president of workplace savings and retirement solutions at Principal Financial Group, noted that life stage provides important context for how consumers experience the economy. The Federal Reserve report indicated that retirement income growth played a key role in improving the net worth of the oldest households. Median income rose by 24% for families headed by those age 75 or older between 2022 and 2025, while income for families under 35 increased by just 2%.
Research from the JPMorganChase Institute further illustrates how older consumers are accessing their assets. In the three months ending in April 2026, 8.2% of individuals moved money from investment holdings to checking accounts, up from 4% in the same period in 2019. The institute analyzed more than 20 million de-identified Chase checking accounts to reach these conclusions. Net transfers from investments to checking accounts equaled 6.8% of spending in April 2026, compared with 3.5% in April 2019.
Chris Wheat, president of the JPMorganChase Institute and co-author of the report, explained that engagement with retail investment accounts is becoming more integrated into daily household management, particularly for older individuals. Among the wealthiest seniors aged 65 and older, the share making net withdrawals from investment accounts rose to 37.3% in 2025 from 24.5% in 2019. For this group, investment flows equaled 14.9% of spending in 2025, up from 8% in 2019.
The report attributes these trends to several factors, including normal retirement withdrawals, the shift from traditional pensions to defined-contribution plans, and a potential wealth effect from stock market gains. While experts caution that not every baby boomer is financially secure or every younger American is struggling, the generational divide is becoming a significant factor in understanding the U.S. consumer economy.