Generational Wealth in America: Boomers vs. Millennials – Who’s Ahead in 2025?

The discussion of Generational Wealth in America often circles to Baby Boomers and Millennials. While Boomers have long held the lion’s share of U.S. household wealth, recent data shows Millennials (and older members of Gen Z) are closing some gaps – though with distinct challenges. Understanding Baby Boomers wealth, Millennial wealth, and the financial habits of Gen X in between is crucial not only for individual planning but for policy, investing, and generational equity.

In this article, we’ll compare Boomers and Millennials using the most recent data (2024-2025), assess generational wealth trajectories, financial habits, and explore what Millennials need to do to build sustainable wealth in the shadow of Boomer advantages.

1. What the Data Reveals: Wealth by Generation in 2024-2025

Wealth Holdings at Similar Ages – Are Millennials Outpacing Boomers?

• According to the St. Louis Fed (Q4, 2024), younger U.S. households (Millennials + Gen Z, defined as those born 1981 or later) had average household wealth of US$347,000 at about age 34. In contrast, Gen Xers had about US$283,000 at the same age; Boomers had US$257,000 at comparable ages. St. Louis Fed
• That is, younger Americans now have ~1.23 times the wealth Gen X had at the same age and ~1.35 times the wealth Boomers had at the same age. St. Louis Fed

Overall Shares of Wealth and Boomer Dominance

• Baby Boomers control just over 50% of all U.S. household wealth; their share peaked around 53% in 2021. Investopedia
• Millennials’ wealth share still lags in absolute terms: while their wealth is growing, they do not yet hold large fractions compared to Boomers, especially when adjusted for age. Debt loads, housing costs, student loans reduce net wealth. Investopedia

Real Estate, Investments, and Asset Types

• Boomers hold a large portion of their wealth in accumulated real estate, employer-sponsored retirement plans, equities, pension entitlements. Millennials, while investing more, are still building their asset base. Student debt and lower homeownership rates remain obstacles. Self St. Louis Fed
• According to Equifax Wealth Trends (2025), “investments” (stocks/other financial assets) have risen significantly among Affluent households, while deposits (cash, savings) have declined for many life stages, including among younger households. Equifax

2. Financial Habits & Constraints: What’s Helping/Holding Back Millennials

Debt Burdens and Costs

• Millennials carry heavier debt burdens than Boomers did at similar ages: student loans, higher educational costs, higher housing costs. These reduce ability to save, invest, or accumulate net worth.
• Inflation and cost of living pressures (housing, healthcare, childcare) erode disposable income.

Homeownership & Real Estate Wealth

• Real estate has been a major driver of Boomer wealth. Boomers generally purchased homes when home prices to income ratios were more favorable. Millennials face steeper home price inflation, higher down payment requirements, and high mortgage rates.
• For many Millennials, home equity contributes less (or more slowly) due to delayed purchases or renting longer.

Saving, Investing & Retirement Vehicles

• Boomers benefited from more stable employer-sponsored pension and 401(k) plans, often with generous matching, combined with lower fees and less competition. Millennials must often navigate multiple job changes, fee-laden retirement accounts, or non-traditional careers.
• However, surveys (e.g. Charles Schwab Modern Wealth Survey 2025) show Millennials have expectations of what constitutes “wealthy” or “financially comfortable” that are different from Boomers, often higher thresholds, and many Millennials are more active in planning. Schwab Content

Generational Wealth Transfer & Inheritance

• Boomers are beginning to transfer wealth: inheritance and gifts will play a larger role in future Millennial wealth accumulation.
• Younger generations are increasingly including stipulations/conditions in wealth transfer plans (for example, defining when inheritance is accessible, how it can be spent). In Bank of America / Schwab studies, Millennials & Gen X are much more likely than Boomers to include such stipulations. Charles Schwab Press Room

3. Comparing Gen X: The Bridge Generation

While the main comparison is Boomers vs. Millennials, Gen X (born 1965-1980) plays a key role:

• Many Gen X households are now in prime earning years: their wealth is growing, they often support both children and aging parents (sandwich generation).
• In the Charles Schwab survey 2025, Gen X “Wealthy comfortable threshold” definitions fall between Boomers’ and Millennials’ expectations. Their median or “what do you consider wealthy” number tends to be somewhat lower than Boomers’ but higher than Millennials’ in nominal terms, reflecting differing cost bases and asset sizes. Schwab Content
• Gen X also is positioned to receive inheritance from Boomers, and will potentially manage and redistribute some Boomer wealth, affecting how generational wealth ultimately shifts.

4. What This Means for the Future: Risks, Opportunities & What Millennials Can Do

Risks That Could Stall Millennial Wealth Growth

• Housing affordability: if home prices continue to outpace income growth, real estate will remain a barrier.
• Market volatility: younger investors may be more exposed to losses if they do not diversify.
• Rising costs: especially healthcare, education, childcare – all reduce savings capacity.
• Debt: Student debt, credit card debt, auto loans remain large; they erode net worth.
• Policy risks: tax changes, property taxes, inheritance rules may shift; also inflation / interest rate environments change the value of assets and savings.

Opportunities & Tailwinds for Millennials

• Wealth transfer: inheritances will help, especially for those already asset-rich or with favorable family wealth.
• Increased participation in investment (stocks, retirement vehicles), earlier saving and better financial literacy.
• Real estate in markets that are more affordable (if accessible), or alternative real estate models (co-ownership, REITs).
• Digital investing, fintech: access to lower-cost index funds, fractional real estate, online investing, tools for planning.

Actions Millennials & Gen X Can Take Now

• Prioritize paying down high-interest debt and managing liabilities.
• Save aggressively and early, making use of tax-advantaged accounts (IRAs, 401(k), etc.).
• Diversify asset types: not all in real estate, not all in equities; include fixed income, real assets.
• Engage in financial planning: define goals, document them; include wealth transfer when possible.
• Leverage family advantage where it exists: use gifting, inheritance, trust planning; if not, seek mentorship, financial education.

Conclusion

Generational Wealth in America is changing. While Baby Boomers still dominate in terms of total household wealth and asset accumulation, Millennials (with Gen Z) are showing surprising strength when compared at the same ages. Adjusted for age, younger households now often hold more wealth than Gen X or Boomers did when they were similarly aged – in part thanks to rising asset values, wealth transfer beginning under Boomers, and better financial tools.

“Millennials may not yet have the decades of accumulation that Boomers built, but in many respects they are starting further ahead – if they can navigate rising costs, debt, and housing headwinds with smart habits.”

Actionable Insight: Millennials who want to build generational wealth should focus on reducing debt, investing early, owning appreciating assets, and planning not just for income but for net worth. For policymakers & financial institutions, enabling homeownership, reducing student debt burden, ensuring fair access to investing and wealth-building tools will help narrow the generational gap more meaningfully.

People Also Asked (FAQs)

1. What defines generational wealth in America?
   Generational wealth refers to the assets (real estate, investments, savings) that are accumulated and passed on across generations. It differs from income, which is what one earns in a given period. Generational wealth includes inherited wealth, savings, and investments minus liabilities.
2. How much wealth do Boomers hold compared to Millennials?
   Baby Boomers still hold over 50% of U.S. household wealth. Millennials are increasing their share but still lag behind in absolute wealth, though at comparable ages many Millennials have higher average household wealth than Boomers did at those ages. Investopedia
3. What financial habits do Millennials follow that differ from Boomers?
   Millennials tend to save later, carry more student debt, invest via more diverse asset classes (including digital assets, startups, ESG / sustainable investments), and are more likely to include stipulations in wealth transfer. Boomers benefited from lower cost of real estate, stable employer pensions, less expensive education, etc. Bank of America Private Bank
4. Is Millennial wealth growing faster or slower than Boomers did?
   In many respects, faster – adjusted for age, Millennials/Gen Z have higher average wealth at age ~34 than Gen X or Boomers did at that same age. But challenges such as higher debt, inflation, housing affordability, and fewer decades of compounding still mean many Millennials have more precarious financial footing. St. Louis Fed
5. What role does policy play in generational wealth gaps?
   Significant role. Policies regarding education costs, student loans, housing affordability, tax (capital gains, inheritance), retirement savings access all shape generational wealth. Supporting financial literacy, access to investment tools, affordable homeownership can help Millennials catch up.