Individuals between the ages of 40 and 59, known as Gen X and younger baby boomers, experience the most stress and struggle with managing the concept of longevity, making it crucial for them to start planning for their future and seek guidance from financial advisors, according to research from Transamerica and the Massachusetts Institute of Technology AgeLab.
Canadian Millennials are struggling financially compared to previous generations, with higher levels of debt, stagnant incomes, and less disposable income, which could amplify the impact of an economic downturn, while Boomers are faring much better.
The aging population, particularly the baby boomer generation, is fueling the demand for housing, creating a shortage and making it more difficult for younger generations, like millennials, to buy homes.
Millennials and Gen Zers are concerned about the financial impact of baby boomers, as they believe the older generations' choices have contributed to their current financial struggles, including high student debt and difficulty affording housing, while boomers hold a majority of the nation's wealth.
High home prices and interest rates have created challenges for young Americans, but the boomer generation has benefited from high home prices and bond yields, making them less affected by the economic cons.
The mishandling of inflation, economy, and the federal budget in the United States has resulted in excellent saving and investment opportunities, with higher interest rates on Treasury bonds, CDs, corporate bonds, and annuity rates, benefiting those approaching retirement the most.
Millennials, despite facing challenges such as student debt and the absence of traditional pensions, are actually better positioned for retirement savings compared to baby boomers, according to a study by Vanguard.
The notion of a massive wealth transfer from the baby boomer generation to younger generations is unlikely to become a reality due to the costs of long-term care, high healthcare expenses, and the concentration of wealth among a small number of individuals.
A new analysis from Bank of America shows that Gen Zers and millennials are increasingly taking on gig work to make ends meet, but their credit and debit spending growth is slower than that of baby boomers, indicating that young adults are facing financial constraints and have little discretionary income. This trend is attributed to wage slowdown and rising living costs for younger generations.
Millennials may need to let go of their resentment towards baby boomers in the housing market, as current conditions resemble the 1980s more than the mid-2000s, with factors such as high inflation, rising interest rates, and a surge of millennial buyers contributing to a potential housing recession.
