The Graying of Wealth

According to the Federal Reserve’s latest Survey of Consumer Finances, U.S. families’ wealth and incomes grew across the board between 2013 and 2016. Thanks to the ongoing bull market, the gains in wealth were bigger than the gains in income—and most of these gains went to seniors. In fact, households headed by those age 75 and older saw the largest increases of any age bracket in both mean and median net worth.

This latest good news for the elderly comes atop 30 years of rapid wealth growth among older Americans. As a result, the net worth of older families now towers over that of younger families.

INSIDE THE LATEST SCF FIGURES

The new Federal Reserve numbers reflect broad-based gains that cut across the economic spectrum. In 2016, the median net worth of American households was $97,300, up 16% from 2013 after adjusting for inflation. Mean net worth also rose nearly 26% to $692,100. The figures represent a welcome shift from the years immediately following the recession, when wealth declined for many families.

But the fruits of the recovery have been spread unevenly across age groups. Faring the best are the oldest families led by those age 75+—an age bracket largely occupied by the Silent Generation. (The G.I. Generation, born 1901-24, now comprises barely 7% of Americans age 75 and older.) From 2013 to 2016, this age bracket experienced a 32% increase in median household net worth and a staggering 60% increase in mean net…