The economic crisis has not been as dire for older Americans compared to the young. The result is the largest gap in wealth ever recorded. The younger generation is burdened with debt and facing stagnant wages. Cash advances and even payday loans have become a way of life for some of them, paving the way for a financially bleak future.
The Pew Research Center analyzed 2009 U.S. Census data and found some surprising statistics. In particular, the median net worth of households headed by someone 65 or older was 47 times greater than those headed by someone under 35. Putting numbers to this, it equates to a median net worth of $170,494 compared to $3,662, when comparing older to younger generations.
According to Paul Taylor, who co-authored the analysis, things are developing at a much slower pace for the youth of today. The future remains unknown but if this trend continues, some may question the American dream, the ideal that each generation does better than the one before it.
Demographics of the younger generation include more single parents, minorities, and those who marry and enter job markets later.
The median net worth of Americans over 65 dropped by only six percent from 2005 to 2009. Since 1984, it has increased 42 percent overall. The picture is quite different in younger households, with median net worth plummeting 55 percent since the recent recession and 68 percent in the past 25 years.
An amazing 37 percent of young households currently have a zero or lower net worth.
Young homeowners had a particularly difficult time during the housing crisis. However, the gap in median net worth between old and young began widening decades before the 2006 housing market collapse. Older people seem to have a rosy financial future but many of them are continuing to work, even if they do not need to financially.
