A new report out of the US confirms what many people in Canada believe as well: Millennials are “significantly less” financially secure than their baby boomer parents.
The report, entitled The Financial Health of Young America: Measuring Generational Declines Between Baby Boomers & Millennials, and released by the group Young Invincibles, analyzes the economic challenges facing today’s young people and represents the most comprehensive look to date at the financial security of Millennials compared to their parents.
In summary, the report said, “this generation of young people earns lower incomes, is less likely to own a home, and has lower net wealth than their parents’ generation at the same stage in life.”
And if that wasn’t enough, other findings from the report were:
- Millennials have amassed a net wealth half that of Boomers at the same age.
- Young adult workers in America today earn $10,000 less than young adults in 1989, a decline of 20%
- When baby boomers were young adults, they owned twice the amount of assets as young adults.
“These findings uncover that Millennials have been set back significantly, by not just the Great Recession, but by decades-long financial trends, resulting in major generational declines in financial security between Millennials and Baby Boomers, when they were the same age,” said Tom Allison, deputy director of policy and research for Young Invincibles.
“Millennials make up the greatest share of the workforce and the largest generation in history, so in many ways the situation facing young adults today forecasts the financial challenges ahead for the nation.”
This report also distinguishes financial security by the characteristics that make this generation unique in the first place: cultural and racial diversity, the increased need for skills to compete in the workforce, and a growing reliance on student debt to finance postsecondary education.
“As the new administration and Congress take office this month, we urge them to consider these findings. We need policies that will help Millennials build wealth and make sure our generation doesn’t fall further behind,” said Allison.