You Might Be Wealthier Than The Average Baby Boomer If You Have This Net Worth

Net worth figures of baby boomers clearly highlight the difference between the median and average. A median is the figure that falls in the middle of a list with an equal amount of numbers above and below it. According to MagnifyMoney's analysis of Federal Reserve data (via GOBankingRates), the median net worth of a baby boomer is $206,700. Calculating an average, meanwhile, involves adding up a group of numbers and dividing the total by the group number. The average baby boomer net worth was significantly higher than the median at $1.2 million. The reason for the difference between the median and average? A small number of extremely wealthy people skewed the average radically upward. No matter which figure used, though, when compared to the average net worth of younger generations – $100,800 — the boomer figure is clearly higher.

On a surface level, this makes perfect sense since boomers have had more time to work and pay down debt than younger generations. Other reasons listed in the report for higher boomer net worth include how this generation was in the "right place at the right time." By definition, boomers were born after World War II, allowing them to enjoy the economic boom post-war: falling tax rates during their lifetimes, generally healthy stock market with rising values, relatively affordable housing prices, and since the 1980s, falling loan interest rates. In contrast to pre-boomer generations, boomers have benefited from 401(k) retirement plans and associated tax breaks.

Baby boomers could also rake in the wealth because more of them qualified for pension plans than today's workers. According to the United States Congress, the number of people receiving traditional pension plans plunged from 27.2 million in 1975 to 12.6 million in 2020 – with pension droppages occurring when the workforce was growing. According to the Bureau of Labor Statistics, in 1950, 62 million people were in the civilian workforce whereas, by 2000, there were 141 million. This growth continued, reaching 161.3 million in 2024. So, the number of workers is up, but the number of them receiving a traditional pension is down, favoring workers from previous generations. 

Although the definition of net worth (difference between a person's assets and liabilities) is consistently used, types of assets and debt vary. Assets can include real estate, cars, fine art, savings, and investments. So, one boomer with a higher net worth may be land rich, owning multiple properties, but cash poor. Others can be the opposite. The average baby boomer has these retirement savings, according to 2025 Fidelity reporting: an average 401(k) of $249,300 and/or an average IRA of $257,002 – which may not be enough, putting them at the risk of running out of money during retirement. So, even baby boomers with a higher net worth, depending upon their asset breakdown, could be included in the 45% of boomers who will run out of money, a figure revealed by Morningstar Center for Retirement & Policy Studies (via Money Talks News).