At the end of 1946, the first year of the baby boom, there were approximately 2.4 million baby boomers. In 1964, the last year of the baby boom, there were nearly 72.5 million. The population peaked in 1999, with 78.8 million boomers.
Baby boomers make up more than 20 percent of the population. By 2030, all will be aged 65 or older, and Gen X (1965–80), millennials (1981–96), and Gen Z (1997–present), combined, will represent a much larger share of the population and resulting influence in American society.
Boomer Factoids
- The average net worth of baby boomers ranges significantly. The median net worth is between $200,000 and $255,000, while the mean net worth is between $970,000 and $1.2 million.
- Boomers have accumulated substantial wealth over the years. Their collective wealth grew from $4.5 trillion in 1990 to $76.2 trillion in 2023. They own about half of the nation’s assets of $156 trillion.
- This generation has earned record levels of income and generated great wealth, but they also have spent at record levels and accumulated significant debt.
- Baby boomers have had a tremendous impact on the U.S. economy, driving economic growth for more than a quarter-century.
Where Will the Accumulated Boomer Wealth End Up?
According to financial market intelligence firm Cerulli and Associates, boomers and the Silent Generation (preceding boomers) will pass down $84.4 trillion in assets through 2045, with $72.6 trillion going directly to heirs. The Bank Administration Institute says it will “end up as the greatest transfer of wealth in history.” Ultra-high-net-worth households in the top 1.5 percent will account for 42 percent of this great transfer of wealth—about $35.8 trillion.The wealth of baby boomers is expected to be transferred primarily to their heirs, including Gen X, millennials, and Gen Z, as well as to charities. Estimates suggest that around $53 trillion will be passed down through gifts and inheritances. By 2045, this wealth transfer could total up to $84.4 trillion, with $72.6 trillion going to heirs and $11.9 trillion to charities. How do you think this will affect future generations?
What Changes Can We Expect in the Years Ahead?
Baby boomers hold a substantial portion of the nation’s wealth. As they retire and eventually pass away, there will be a massive transfer of wealth to younger generations. This could lead to changes in investment patterns and consumer behavior.The retirement of boomers will create gaps in the workforce, particularly in industries where they are heavily represented. This could lead to labor shortages and increased demand for skilled workers.
Meanwhile, with a growing number of retirees, there will be increased pressure on Social Security and Medicare systems. This could lead to reforms or changes in how these programs are funded and managed.
Further, as boomers downsize or move into retirement communities, there may be shifts in the housing market. This could affect housing prices and availability, particularly in suburban and rural areas.
In addition, as to politics, boomers have been a dominant voting bloc. Their decline may shift political power to younger generations, potentially leading to changes in policy priorities and political dynamics.
Areas to Consider, Steps to Take to Prepare for the Future
Financial Planning
- Retirement savings: Ensure you have a solid retirement plan in place. The strain on Social Security and pension systems may increase as more boomers retire.
- Health care costs: Anticipate higher health care costs and consider long-term care insurance.
Housing Market
- Real estate trends: The housing market may see shifts as baby boomers downsize or move to retirement communities. This could affect property values and availability.
- Home modifications: If you have aging parents, consider making their homes more accessible or exploring assisted living options.
Workforce Changes
- Skill gaps: As boomers retire, there may be skill gaps in various industries. Upskilling and reskilling can help fill these gaps.
- Mentorship: Leverage the experience of boomers by encouraging mentorship programs in your workplace.
Health Care System
- Increased demand: Prepare for increased demand for health care services. This could mean longer wait times and higher costs
- Caregiving: If you have aging family members, plan for potential caregiving responsibilities. This might include financial planning, time management, and emotional support.
Community and Social Services
- Support networks: Strengthen community support networks to help aging individuals maintain their independence and quality of life.
- Volunteer opportunities: Engage in volunteer work to support elderly care services and community programs.
Technology and Innovation
- Adoption of assistive technologies: Encourage the use of technology to assist with daily living and health care needs.
- Smart homes: Invest in smart home technologies that can help monitor health and safety.
Policy and Advocacy
- Stay informed: Keep up to date with policies affecting the elderly, such as health care reforms and Social Security changes.
- Advocate: Participate in advocacy efforts to support policies that benefit aging populations.
