By now you’ve probably heard that the Baby Boomers are retiring.
The trend, which is also happening in Canada, has sparked debate about what the future holds for millennials.
Some argue that this generation’s desire for independence, and its propensity to travel, will result in more social mobility.
Others, such as Canada’s new prime minister, have suggested that the trend could even encourage more generational poverty, a phenomenon that is happening across the U.S. While the Baby Boom generation has been relatively healthy, some experts have pointed out that this is because the Baby Bombers were not born with the resources to support their families, which has led to a generation that is often financially vulnerable.
A recent survey from the Pew Research Center found that while the Baby Bomers have made significant economic gains, they are not well off financially.
According to the survey, millennials have a median net worth of $72,000, about $1,000 below the median net wealth for Gen Xers and $3,000 above that for Baby Boers.
The Pew study found that more than half of Millennials (53%) were working full-time in 2015, compared to 34% of Baby Boomer adults and 27% of Gen X/Yers.
This suggests that the boomers have been unable to sustain their retirement savings.
But, while this is a concern for many millennials, a more pressing question is how much these young people will benefit from their older counterparts’ economic success.
How does the Boomers fare financially?
While most Boomers’ net worth is in the high-to-mid-to-$100,000 range, they have a relatively small income compared to those in Generation X, Baby Boos and Baby Boons.
While Millennials are earning $2,000 less annually than Gen X, they earn nearly $8,000 more annually.
This is due to higher education and increased employment opportunities, according to the Pew study.
Millennials also have more wealth compared to Baby Booms, which could make them a better match for older Boomers who are struggling to balance their work and home lives.
According a Pew study, the median wealth of the Baby Baby Boom generation is $75,000.
By contrast, the Boomer generation has a median wealth that is $80,000 and the Baby Gen X generation is estimated to have $92,000 in net worth.
Millennials, however, have a lot of room to grow.
According the Pew survey, the average wealth of Millennials is estimated at $86,000 while that of Baby Boms is $85,000 (compared to $64,000 for Baby boomers).
By 2055, the Baby boom generation will be worth $2.6 trillion more, according the Pew report.
However, if Millennials continue to work full- time, they will be better positioned to benefit financially.
Millennials will have more access to financial advice and support, said Michael Deutsch, senior vice president of research at Wealthfront, a financial platform that connects millennials with financial advisors.
Millennials can also benefit from education.
The Millennial generation is also more likely to take advantage of college loans, which are more likely for lower-income students, and are more able to afford their education, said Deutsch.
“I think that the generation is going to have the highest average net worth, but it’s also the most educated generation in the world,” said Deichen.
According as Pew Research, the Generation X/Boomer population has a net worth that is only $2 million, or $1.5 million below the average net wealth of Gen Y and Baby boom, the boom generation.
Millennials are also more apt to get into debt, which helps pay for education, according a Pew report on the financial success of Millennials.
As a result, many Millennials have taken out student loans to pay for their education and are also starting to retire.
As of last year, only 28% of Millennials had student loans, while 25% had student debt in the mid-90s.
The majority of these borrowers are in the higher-income bracket, which means the average debt for these borrowers is $23,800, according Pew.
However as Millennials get older, they’re likely to pay higher student loan rates and will be able to take on more debt.
If you want to know more about the impact that the Booms will have on your retirement savings, check out this report by Morningstar.
How can Millennials improve their finances?
Many Millennials have the opportunity to earn more money while still living at home.
For example, millennials can make their own money by starting their own business, or they can start a small business that makes their own products.
Additionally, millennials are not beholden to the government and can save more money through savings accounts.
This allows them to spend their money on things that are not related to work.
For instance, millennials may be more likely than Baby Boominers to use their 401(k) to save for a