Baby-Boomers
...al net worth as of 1994 (in current dollars) not including social security and pension wealth. Older boomers (born 1946-1954) had about $58,000 in net worth and younger boomers (born 1955-1964) about $23,000. Overall, boomers’ net worth grew by an average of 12% per year in real terms between 1984 and 1994. When boomers are divided into the first half and second half of the generation, older boomers increased their net worth about 70% over the 1984-1994 period. Younger boomers have seen their net worth grow about 300% between 1984-1994. Even though younger boomers’ wealth grew faster, they accumulated about $11,000 less in net worth compared to their older counterparts (after adjusting for inflation) when both groups were in their 30’s. This data contradicts the expectation that economic-well being will generally improve over time for successive age cohorts. Boomer wealth varies significantly based on demographic characteristics. Gender, marital status, race and education are determining factors in wealth accumulation. In 1994 the net worth of a male Babyboomer is $55,500 compared to $8,700 for a female. Race differences are even greater than the differences between males and females. Net worth for white’s in 1994 were $52,100, blacks were $6,800, and the median for all other races were $25,000. This net worth difference is attributed to income differences. Husband-wife families are by far the most successful types of boomer family in terms of wealth accumulation, with a median total of $73,000 in 1994. Boomer families with two or more children were more successful at accumulating wealth than childless families. While boomers with children appear better prepared for retirement, their savings will most likely also be needed to pay for their children’s education. Major differences in net worth show the importance that education has on wealth. The median net worth of a high school graduate is $25,000 in 1994, whereas a college degree and above accumulated $85,000. Some college without a degree had a median net worth of $37,800, considerably less than college degreed boomers. There are many factors that affect the way Babyboomers think. It is apparent that they are not skimping and saving as their parents did. Based on a 1999 report by the U.S. Council of Economic Advisors, personal savings have decreased from 1959 to 1997. ...