Millionaires are older boomers, and getting older, delays inheriting wealth

The trend in the average age of American millionaires from 1992 to 2022 has been an increase. In 1992, the average millionaire was around 57 years old, while in 2022, the average millionaire was around 61 years old34. This indicates that younger millionaires aren't joining the ranks fast enough to keep the average age steady, and it highlights the challenges faced by younger workers in amassing wealth3.

The wealth accumulation pattern of baby boomers has had a significant impact on younger generations' ability to amass wealth. Several factors contribute to this situation:

1. Delayed Wealth Transfer: Baby boomers are holding onto their wealth longer, which means that the intergenerational wealth transfer is happening later in life for younger generations2. Inheriting wealth at an older age can have a less significant impact on an individual's financial situation, as they may have already made major life decisions without the benefit of that inheritance.

2. Housing Market Constraints: Baby boomers are more likely to own larger homes, which they are holding onto for longer. This trend constrains the supply of available housing, making it more difficult for younger generations to purchase homes and build equity.

3. Economic Precarity: Younger generations, particularly millennials and Gen Xers, are dealing with economic challenges such as high housing costs, student loan debt, and wages that haven't kept pace with productivity5. These factors make it more difficult for them to save and invest for the future.

4. Increased Reliance on Inheritance: With the rising average age of millionaires and the concentration of wealth in older hands, younger generations may have a harder time accumulating wealth on their own. This situation increases the reliance on inheritances to achieve financial security and upward mobility.

Overall, the wealth accumulation pattern of baby boomers has created a challenging environment for younger generations to build wealth. Factors such as delayed wealth transfer, housing market constraints, economic precarity, and increased reliance on inheritances all contribute to this situation.