Millennials Fail To Keep Up With Mom And Dad
WASHINGTON (dpa-AFX) - Millennials are earning 20 percent less than their parents did and have accumulated only half the assets than their baby boomer parents, new research showed.
According to an analysis of Federal Reserve data by the advocacy group Young Invincibles, baby boomers were much more financially secure than millennials when they were the same age.
For their research, the analysts compared people in the age group of 25 to 34 years in 2013, the most recent year available, to the same age group in 1989 after adjusting for inflation.
"The American Dream promises that the next generation will fare better than the previous one. However, young Americans today may be on track for lower lifetime earnings than their parents," according to the report.
The analysis showed that boomers earned higher incomes, amassed greater assets, were more likely to own homes, and had greater net wealth when they were young adults than today's young people.
Millennials in 2013 had a median household income of $40,581, down 20 percent compared to young adults in 1989. The decline in income is despite millennials being better educated.
In fact, today's young adults with debt and a degree earn roughly the same amount as that earned by workers with no degree in 1989. However, the report noted that a college degree - with or without debt - is still worth it.
In addition, fewer millennials have a lower rate of home ownership than boomers. Only 43 percent of millennials owned a home in 2013, compared to 46 percent in 1989. However, the rate of home-ownership for college-educated young adults has increased.
As young adults, baby boomers owned twice the amount of assets as young adults in 2013. Also, the net wealth, or net worth of millennials was $10,900, 56 percent lower than it was for boomers.
The research also found that white millennials still earn significantly more than their blacks and Latino peers.
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