The Surprising Reasons Why Millennial Wealth is Growing Faster Than Other Generations

Millennials in the U.S. are expected to outpace other generations in building wealth, growing at nearly twice the rate of total U.S. wealth, thanks to better savings and investment selection.

Millennials are on track to accumulate $140 trillion by 2045, with their wealth projected to grow 11.3% annually on average during that time—nearly double the 5.8% national average growth rate, according to an April 2025 report from Wealthfront and Oxford Economics. The forecast does not account for future inheritance, which means millennial wealth is projected to grow significantly even before the Great Wealth Transfer.

Another report found that younger Americans saw the fastest wealth growth of any age group since the onset of the pandemic. Millennial households saw their inflation-adjusted wealth more than double from 2019 to 2023, according to an analysis by the Center for American Progress.

This contradicts familiar narratives that this generation, born between 1981 and 1996, might be worse off than their parents because of student loans and employment challenges.

Key Takeaways

• Millennial wealth is expected to grow at almost double the overall growth rate for U.S. wealth over the next 20 years.
• The increase in millennial wealth is expected to be primarily driven by their investments in equities and retirement accounts.
• Millennials are also saving earlier in life and doing so at higher rates.

Why Millennial Wealth is Growing

“Millennials have been growing their careers through multiple financial crises, and have had to overcome multiple periods of financial adversity ranging from the Great Recession, to sovereign debt crises driving market volatility, to Covid-19, to higher inflation, and now to higher rates making it more difficult to buy homes and take out loans,” David Fortunato, Wealthfront’s CEO, told Investopedia in an email. “But this report shows that the resiliency and financial sophistication of this generation have won out over these challenges and will continue to help them achieve their goals.”

The study shows that the growth in millennial wealth over the next two decades is likely to come from several key factors. Millennials have demonstrated higher saving rates, outpacing the national average by 4.9 percentage points over the past 10 years.

They’re also strategically positioning their assets in high-growth areas, primarily in real estate, equities, and pension assets, which include 401(k) investments. Those investment choices—plus expected career growth and rising incomes—have positioned millennials to accumulate wealth faster than the generations before them. That’s because growth in equities and retirement assets has been outpacing other asset classes. Real growth (inflation-adjusted) in equities is expected to average 10.2% annually from 2022 to 2045, while pension assets are expected to grow 11% annually on average. That compares to 6.1% annually for other assets.

Millennials’ retirement savings are expected to contribute the most to their overall wealth. By 2045, they’re projected to hold $30 trillion in retirement assets, according to the report.

While Millennial households of all income levels are expected to see their wealth increase, growth is expected to be stronger for high-income households. Those earning over $229,900 in 2022 held about 52% of total millennial wealth. But by 2045, they’ll hold 63% of the total net wealth, Wealthfront estimates.

How Millennials Compare to Other Generations

The Wealthfront research is not the first to point out that the conventional wisdom about millennials is wrong. A 2024 study by U.S. Federal Reserve economists found that, at ages 36 to 40, millennials had median household incomes that were 18% higher than Generation X at the same age. While this growth rate is slower than the silent generation (34%) and baby boomers (27%), it still shows intergenerational progress.

Millennial holdings in equities are notably higher than those of previous generations. The Wealthfront report found that millennials currently hold about 13% of their wealth in equities, while baby boomers held less than 10% in equities at age 34.

This higher allocation to equities, which have had better risk-adjusted returns than other asset classes, could contribute to millennials’ faster wealth accumulation over time, according to Wealthfront. However, if the generally bullish market for equities over the long term doesn’t hold up, it could be a problem for millennials’ savings.

The Bottom Line

Conventional wisdom has long held that millennials in the U.S. might be the first generation to be worse off than their parents. But between 2022 and 2045, millennials’ net wealth in real dollars is expected to grow by 8.7%, compared with 3.3% for the overall national wealth.

“This generation deserves more recognition for their smart financial choices and how they have persevered through adversity,” Fortunato said.