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3

Its not just a case of where you're born but when!

"Overall, millennials earn 20% less than baby boomers did at the same stage of life, according to “The Emerging Millennial Wealth Gap,” a recent report from the nonprofit, nonpartisan think tank New America. Specifically, median earnings for those 18 to 34 are lower than they were in the 1980s, a disparity that was first noted in a 2017 report from the non-profit Young Invincibles. And the flow of today’s paychecks is less predictable due, in part, to the effects of the Great Recession and a rise in contract and freelance positions that may be less consistent in hours and pay."

24

I'd be interested to see what this looks like if we take away home equity from net worth calculations. Being able to afford a home (which long term low interest rates have made very difficult) is a major factor in accumulating wealth over a long period of time.

I'm actually optimistic for Millenials as many are still young enough to pivot into a new career...so long as they're willing to do more traditionally blue collar work.

21

More than earnings, Boomers had about 7x the wealth that Millennials have at a comparable time. So while Millennials are earning less, they have even less. Say Millennial (M) earns 20% less than Boomer (B), but also has another 10-20% less due to debt load, and another 10-20% less due to healthcare costs and makes the (reasonable) decision to rent given precarious job market and likely top of market in homes, M is now accumulating far less wealth B. Forward this scenario for several decades and the disparity between M and B will be several multiples of actual wealth.

1

This is another great point, they have traded accumulating capital for accumulating debt.