The youngest generation always seems to be hurt by the economic stick and stimulated by it. Millennials have been grappling with everything from a sluggish post-recession job market to soaring student debt, and Gen Z is not far behind as they emerge from the pandemic in an era of high inflation. It’s an age-old story, the media and older generations have always blamed young people’s financial woes on frivolous spending habits; but younger generations are pointing the finger at them.
A new survey conducted by OnePoll on behalf of National Debt Relief shows that a majority (65%) of Millennials and Gen Z are concerned about the impact of Baby Boomers on their financial future. The survey polled 2,000 Americans, 500 from each of the four dominant generations. (Okay, okay, okay, so what.) But many baby boomers agree — 45 percent believe their generation’s financial decisions will at least somewhat impact the future of younger generations.
Baby boomers make up a large portion of the population and therefore have a large influence on past and future plans. Such a large generation is bound to leave a wave rather than a ripple effect, as the aging workforce and population have huge impacts on everything from the job market to politics. “As they reach retirement age, there are concerns that the pressure on government-funded programs like Social Security and Medicare may become unsustainable, potentially leaving younger generations with the financial burden of supporting these programs,” Jeff Bisman Biesman, chief marketing officer for National Debt Relief, wrote in a statement wealth.
Questions from both parties about the sustainability of Social Security have sparked widespread concern across generations. Many Americans believe Social Security will become less effective or disappear soon, and the youngest groups are the most skeptical about whether they will see their investments through.
Maybe Millennials and Gen Z are so worried about the impact of Baby Boomers on the future because they’re already feeling it today. The survey found that three-quarters of Millennials and 82% of Gen Z believe their current financial struggles are partly due to the choices of Baby Boomers.
Baby boomers have received some criticism for leaving Millennials facing financial ruin. Older generations don’t have to spend as much on housing and education and are able to accumulate wealth more easily. Jill Filipovic, author of “Okay Boomers, Let’s Talk,” told Salon in an interview that they climbed up the ladder and then “pulled the ladder behind them “.
The system implemented by older working-class generations has saddled Millennials and Gen Z with massive student debt, hampering wealth accumulation and retirement savings. In the real estate world, many people are simply struggling to pay rent, and those who finally saved up enough to buy a home are now being overtaken by baby boomers with all-cash offers. “Gen Z and Millennials are facing rising costs in education, housing and health care,” Bisman noted. “Some attribute these rising costs in part to policy decisions and economic conditions influenced by previous generations, including baby boomers.”
Of course, that’s not to say that baby boomers haven’t had any difficulties of their own, or that they’re entirely responsible for the economic woes younger generations are facing. Millennials and Gen Z are not simply playing the blame game; 71% and 70% of people in the survey admitted that they are responsible for their money habits. But the baby boomers inherited a richer inheritance than their children, and they now own more than half of the nation’s wealth.
“Baby boomers have been consuming more than their fair share. This will saddle future generations with huge debts that will leave us with a lot of debt,” billionaire boomer Howard Marks himself wrote in a 2021 memo to clients. Stems from expenditures that they do not benefit proportionately from. Economic ability to advocate for a system that benefits them.
It’s no wonder that Gen Z’s financial anxiety is on the rise, with Millennials experiencing peak levels of financial anxiety and even depression. While many people do feel financially stable, some only feel that way because they rely on help from their baby boomer parents. But the impact of baby boomers on the financial future of younger generations is likely to be positive—they will provide a massive $72 trillion wealth transfer to future generations, which may benefit millennials in the long run.
But that doesn’t solve the holes in the system that have trapped generations who are often ridiculed and deeply in debt. As the old saying goes: “Give a man a fish, and you can feed him for a day; teach a man a fish, and you can teach him to fish.” Teach a man to fish and you can feed him for a lifetime. ” But someone seems to have broken the rod for Millennials and Gen Z.
