Federal Reserve figures show a widening age-based wealth gap: inflation-adjusted median net worth rose 38% for households headed by someone aged 75 or older between 2022 and 2025, while it declined 23% among households headed by someone under 35.
Older Americans’ Wealth Grows as Younger Households Fall Behind
Older American households recorded the strongest increase in median wealth between 2022 and 2025, while younger households experienced a significant reversal, according to the Federal Reserve’s latest Survey of Consumer Finances.
An analysis published by Fortune found that inflation-adjusted median net worth climbed to $504,600 for households headed by someone aged 75 or older, up from $366,288 in 2022. Among households headed by someone under 35, median net worth fell from $42,725 to $32,820.
The figures represent changes in median household net worth, not average wealth or the experience of every person in either age group. Net worth measures the value of assets, including investments, property and savings, minus outstanding liabilities.
The gap widened even though the overall U.S. household wealth picture improved modestly. Across all families, inflation-adjusted median net worth increased by about 2% over the same three-year period, reaching $215,900.
The Federal Reserve’s household finance research provides a detailed view of assets, debt and income across U.S. families. Its latest findings indicate that the broad national increase concealed markedly different outcomes depending on the age of the household head.
The oldest group’s median net worth was about 15 times that of the youngest group in 2025, compared with roughly nine times in 2022. The results add to concerns about how unevenly wealth-building opportunities and asset gains are distributed across generations.
However, the oldest category should not be treated as a direct measure of baby boomers alone. It includes households headed by people born in 1950 or earlier, meaning members of the Silent Generation are also represented. The under-35 category similarly includes both Generation Z and younger millennials.
Stock Market Gains and Demographic Changes Help Explain the Divide
Several factors help explain why older households accumulated more wealth during the period, including their greater likelihood of owning financial assets and the rise in stock prices. Households with substantial investments can benefit when markets rise, while people with limited assets have fewer opportunities to capture those gains.
The S&P 500 gained approximately 78% between the end of 2022 and the end of 2025, according to reporting by CBS News on the Federal Reserve findings. That rally supported portfolios holding U.S. equities, although stock-market performance alone does not explain changes in household net worth.
Older households may also have accumulated wealth over decades through property ownership, retirement accounts and investment contributions. Yet the comparison between 2022 and 2025 does not track the same families throughout the period. Changes in which households fall into each age category can affect the reported median.
Data analyst Nick Maggiulli, whose work was cited by Fortune, found that comparing older age groups across the two surveys still showed a substantial wealth increase, though smaller than the 38% headline figure. That suggests the result reflects both asset growth and the changing composition of the oldest age bracket.
Younger households faced a different comparison. Their median net worth had risen sharply from approximately $18,000 in 2019 to nearly $43,000 in 2022, before declining to about $33,000 in 2025. The latest decline therefore followed an unusually strong pandemic-era increase, rather than erasing all gains made since 2019.
Even so, younger adults can face greater difficulty building wealth when housing costs, debt payments and everyday expenses compete with saving and investing. The Federal Reserve’s broader household data also point to increased debt-payment pressure, reinforcing the difference between owning appreciating assets and relying primarily on current income.
For readers assessing their own financial position, the age-based figures are a reminder that wealth accumulation depends on more than salary alone. Consistent saving, managing expensive debt and building an investment portfolio over time can all influence long-term outcomes. Wealthier Today’s guides to long-term investments, building wealth on an income below $100,000, and investment diversification explain some of the approaches households can use to build assets while managing risk.
Retirement income is another part of the picture. Social Security can provide a foundation, but many households also depend on workplace plans, pensions and personal investments. Wealthier Today has also examined how Social Security retirement-age changes could affect monthly benefits and why some retirees are being encouraged to build savings beyond Social Security.
The latest data do not establish that every older American is financially secure or that all younger households are losing wealth. They do show that the inflation-adjusted median wealth of the oldest households increased substantially while the youngest group’s median fell between the two surveys.
For policymakers and households alike, the central question is whether younger generations can build assets at a pace that supports homeownership, financial resilience and retirement, particularly if future market gains are less pronounced.
For investors who want broad stock-market exposure rather than relying on a handful of companies, low-cost S&P 500 index funds are one approach to consider, although investment choices should reflect each household’s time horizon and tolerance for losses.