Generation X has been seeing a boost in wealth since the pandemic began, according to data from the Federal Reserve, per Bloomberg.
The data showed that Gen Xers, those ages 41 to 56, have seen their assets rise by $13 trillion since the first quarter of 2020, the report stated. They also saw big increases in equities and pension entitlements. And their share of the nation’s consumer debt went down.
The pandemic overall has seen the wealth distribution shifting from the older generations to those now hitting their prime earning years, the report stated.
Gen Xers were the worst-hit by the 2008 financial crisis, and millions of them lost jobs in their 30s and early 40s at that time. But their careers have leveled off since, and they’ve been working to invest in the stock market and 401(k) retirement accounts since, according to the report.
Members of Gen X held 28.6% of the nation’s wealth in June, which was a boost of 3.9 percentage points from the first quarter of 2020, the report stated. That came out to a 50% gain in their net worth, which is the difference between a household’s assets and debts.
In addition, Gen Xers benefited more than boomers as pension assets rose, with the youngest boomers being 57 and possibly retired, meaning they’re drawing down on pensions, according to the report.
In five quarters, Gen X’s equity assets more than doubled to $10.5 trillion, the report stated, which is now more than 10 times the stock holdings of millennials but only around half of boomers’ equity holdings.
PYMNTS data showed other aspects of pandemic-related wealth changes, in that the average consumer has exited the worst parts of the health crisis with better finances.
A total of 50% of consumers can now handle a $400 bill unexpectedly forced upon them, for example.