Image source: Monster Ztudio, shutterstock.comGen Xers have seen their aggregated wealth increase by 50% during the pandemic, according to data from the U.S. Federal Reserve.
This means that the pandemic has been a partial windfall for Generation X, aged between 41 and 56—the demographic that was most affected by the 2008 financial collapse. Since then, many Gen Xers recovered investing money into equities and their pensions, which have both seen solid gains lately despite COVID-19.
Fed data indicates that as of June 2021, Gen X held 28.6% of the U.S.'s total wealth, which represents a 50% jump in their aggregate net worth.
Real estate can account for part of the Gen X trend. Gen Xers total real estate assets rose by the same amount between Q1 2020 and Q1 2021 as boomers, a demographic that is 22% larger. As COVID-19 caused chaos in the housing landscape, many members of Generation X already owned homes, enabling them to capitalize on the runaway market.
Over five quarters, Gen X pension holdings more than doubled, reaching $10.5 trillion, more than 10 times the holdings of millenials, yet still under half of those held by Boomers.
The trend highlights the shifting wealth horizon, as millennials still struggle to make the gains of previous generations amid higher volatility and global uncertainty.
