The latest Federal Reserve Survey of Consumer Finances reveals a stark generational wealth divide in the U.S. Between 2022 and 2025, households headed by someone 75 or older saw their median net worth surge by 38%, while those under 35 experienced a 23% decline. After adjusting for inflation, the oldest group's median net worth rose from $366,288 to $504,600, while the youngest group dropped from $42,725 to $32,820. This means the oldest households now hold roughly 15 times the wealth of the youngest, up from about 9 times three years earlier.
Overall, inflation-adjusted median net worth for all families increased by just 2%, reaching $215,900. However, this modest national gain masks vastly different experiences across age groups. Yale professor Samuel Moyn argues that this wealth concentration among older Americans reflects an 'oldigarchy,' where the elderly wield disproportionate economic and political influence. He suggests that the system now reserves power and wealth for later life, which he believes is the wrong time for such control.
Nick Maggiulli, chief data officer at Ritholtz Wealth Management, attributes the divide to differences in asset ownership. Older households benefit from appreciating homes and financial investments, while younger households often rely on depreciating assets like cars. The share of under-35 homeowners fell from 38.5% to 35.6% during this period, leaving many without access to wealth-building opportunities. Maggiulli notes that while older households saw passive wealth gains, younger generations face a tougher economic landscape with record-low housing affordability and a challenging job market.
The wealth gap also has political implications. Young men, who swung sharply toward Trump in the 2024 election, may feel economically left behind. As midterm elections approach, Republicans are watching to see if this support holds. The data suggests a growing divide where asset appreciation benefits older generations while younger ones struggle to build wealth, raising questions about fairness and economic mobility.