The old people of America have a consolation. They may not have many years left, but they are wealthy, at least compared to the young. Young Americans face such severe financial barriers that they many never have more than the most modest net worths.
A new study from Pew reports that “in 2009 the typical household headed by the older adult had $170,494 in net worth, compared with just $3,662 for the typical household headed by the younger adult.” Old is defined by those household heads over 65. While young as under 35. The situation is more dire that it was 25 years ago.
Trends in household wealth reveal the pattern most vividly. In 2009, the median net worth (all assets minus all debts) of households headed by an adult ages 65 or older was 42% more than that of their same-aged counterparts in 1984. By contrast, the net worth of a typical household headed by an adult under the age of 35 in 2009 was 68% less than that of their same-aged counterparts in 1984.
Since younger Americans are also more likely to be unemployed for long periods, they have nothing to look forward to–financially.
Methodology: The report describes trends over time for households headed by different age groups in wealth, housing, income and other measures of economic well-being. The two main data sources for this report are both from the U.S. Census Bureau.
Douglas A. McIntyre
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