PHOENIX — The economy is growing, but the newest Federal Reserve numbers show wealth is falling for Americans under 35.
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The Federal Reserve's Survey of Consumer Finances — the major report the Fed releases every three years — shows that after inflation, overall household wealth is up 2% since 2022.
But that 2% headline number obscures a sharper divide.
Households headed by someone over 75 saw their net worth grow 38%. Most other age groups moved only a few points in either direction. The youngest group — households under 35 — lost 23% of their net worth.
Context matters here: that same under-35 group more than doubled its net worth between 2016 and 2022. This is a sharp setback, not a long slide.
The data also shows clear winners and losers across other categories. Technical, sales and service workers gained ground, as did couples with children and top earners. Those who fell behind include households in the lowest quarter of net worth, high school diploma holders, Black households, and managers.
Two broader economic shifts help explain the divergence.
Wages and salaries now make up 57% of household income, down from 67% before 2013. At the same time, Social Security and retirement accounts have grown to nearly 15% of all net worth, up from under 10%. The economy is increasingly rewarding ownership over paychecks — a dynamic that favors people who already hold assets.
The wealth gap at the top remains stark. The top 10% of earners hold 61% of the nation's net worth. The bottom 60% hold just 14%.
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