The financial news for Generation X is pretty good for a change. Gen Xers will own nearly half of America’s wealth by 2030, according to a recent study from Deloitte Center for Financial Services.
The study focused on the future of wealth in the United States. Researchers mapped generational trends highlighting the future prosperity of the Silent Generation, Baby Boomers, Gen Xers and Millennials. Here’s a quick excerpt:
Gen Xers, America’s neglected middle children, squeezed between two much larger generations, are entering the most financially rewarding stages of their lives…
…Household financial assets in the United States are forecast to grow from $35 trillion in 2015 to nearly $64 trillion by 2030, a compound annual growth rate of 4.1 percent (figure 8). The growth in financial assets for each generation will be driven by three important factors:
- Personal savings, which will drive the acquisition of new financial assets
- Portfolio returns, which will affect the value of the existing pool of financial assets
- Drawdowns, which reflect the spending down of assets in retirement (In the forecast model, we have assumed that these will equal 4 percent of financial assets each year.)
Click here to read the full report.
Here are some charts from the study.
This isn’t too surprising. The 40s are people’s prime earning time, where salaries are high and people are saving a lot, both for their own retirement and the children’s education. Gen Xers are also likely to start coming into inheritances as (sadly) their parents pass on. Meanwhile, Boomers are starting to draw down on their savings as they go into retirement.
That said, about time we made some money. Slackers no more, us!