Boomers are the wealthiest generation that’s ever lived and millennials are the ‘biggest losers’ thanks to economic crises

Baby boomers are the wealthiest generation in history, thanks to affordable housing and strong stock market returns, according to a new report from Allianz. These favorable conditions have led to significant wealth accumulation, making them the richest generation ever.

In contrast, millennials have faced a series of economic setbacks, earning them the title of the "biggest loser" in the wealth accumulation race, according to Allianz’s 2024 Global Wealth Report.

Boomers benefited from a "unique historical situation" of strong economic growth, affordable housing, and booming equity markets, which allowed them to amass considerable wealth, Allianz noted in its report released Tuesday.

Millennials, however, have had to save through major crises, including the 2008 financial crash, the COVID-19 pandemic, and a period of high inflation, which has drastically reduced the returns on their savings compared to earlier generations.

As a result, the wealth that millennials have managed to save is far less impressive than that of their predecessors. Allianz's report modeled hypothetical savings across generations to track wealth accumulation over time.

For example, a U.S. baby boomer born in 1960, saving 10% of their annual income over 40 years, would have amassed savings worth more than 850% of their disposable income.

In comparison, a Gen Xer who saved at the same rate would now have wealth equivalent to 606% of their disposable income, with an annual return rate of 6.7%.

But the wealth gap between boomers and Gen X pales in comparison to the challenges faced by millennials. A millennial born in 1984, saving at the same rate, will only accumulate savings worth around 430% of their disposable income over their lifetime.

Even though millennials still have decades left to save, Allianz projects that they will never reach the wealth levels of boomers. By the end of their lives, millennials are expected to accumulate around 670% of their disposable income.

Gen Z, the youngest generation entering the workforce, is expected to do slightly better than millennials but still won’t match baby boomers. Gen Zers born in 2004 are projected to save 766% of their disposable income by 2063, surpassing both Gen X and millennials.

However, Allianz concludes that "even with similar savings habits, no generation will ever match the wealth accumulation that baby boomers enjoyed."