From CNBC:

A new study by the New York Federal Reserve reveals that Americans under 40 saw their total wealth increase by 80% to $9.5 trillion between the first quarter of 2019 and the third quarter of 2023, with gains driven largely by stocks. In contrast, older generations saw much smaller wealth increases.

The study found that younger generations, particularly those under 40, saw significant wealth gains due to the increased value of their financial assets, particularly stocks. As a result, younger Americans were able to increase their overall wealth much faster than older age groups.

The study attributed the wealth gains of younger generations to larger stimulus checks received during the pandemic, which were used in part to invest in stocks. Younger adults also increased their exposure to equities as a financial asset, leading to higher growth in both financial assets and overall wealth.

Despite their faster growth in wealth, Americans under 40 still hold significantly less wealth than those older than 40. Their total wealth of $9.5 trillion is dwarfed by the $29 trillion held by those 40 to 55, and the $104 trillion held by those over 55.

A study by the University of Cambridge revealed that the median millennial had 30% lower wealth than the median boomer at the age of 35, with real estate out of reach for many younger buyers. Stocks have become an important wealth builder for younger generations, and may continue to narrow the wealth gap between older and younger Americans.

The wealth gap between younger and older generations may continue to narrow, as faster wealth growth among younger adults has led to a limited narrowing of age-based wealth disparities over the past four years. This is attributed to the increased exposure to equities and higher growth in both financial assets and overall wealth for younger generations.



Read more: Younger generations gained more wealth than others since 2019, study says