According to a new Issue Brief published by Boston College’s Center for Retirement Research, Millennials now have more net wealth relative to income in their 30s than Gen Xers and Late Boomers had, despite still having more student debt.
Why it matters: Millennials started their careers in weak labor markets, so initially they lagged behind Late Boomers and Gen Xers at the same ages in life events and wealth.
Go deeper: Researchers attribute Millennials’ higher net wealth to a huge runup in home values, which soared during COVID, but gains in financial wealth also boosted balance sheets.
Yes, but: It’s not clear, however, what this good news means for retirement security, since house prices may reverse, and few retirees tap their equity for consumption, according to the Issue Brief.
