US Wealth Gap Widens: Young Americans See Net Worth Plummet
A recent survey by the U.S. Federal Reserve shows a significant decline in net worth for Americans under 35, while older and wealthier demographics experienced substantial gains.
New data from the U.S. Federal Reserve's Survey of Consumer Finances reveals a widening wealth gap across American demographics. Between 2022 and 2025, the average net worth for individuals under 35 years old decreased by 33 percent, falling from $200,800 to $135,400.
In stark contrast, older and wealthier age groups saw their net worth increase. Americans aged 45 to 54 held an average of $1.24 million, while those aged 55 to 74 had an average of $1.88 million. The group aged 75 and older experienced the most significant growth, with their net worth rising to $1.96 million, a 10 percent increase over three years.
The survey highlights that wealth accumulation patterns reinforced existing inequalities. Younger families, renters, and households without a college degree experienced declines in both median and mean net worth. Conversely, wealthier and older families benefited from substantial gains.
While wealth distribution showed increasing disparity, income trends offered a slightly more optimistic outlook for lower earners. The median household income rose by 7 percent to $82,200 between 2022 and 2025. However, the mean household income dropped by 6 percent, indicating a potential narrowing of income distribution, though wealth remains concentrated at the top.