Boomers are the wealthiest generation that’s ever lived, finds Allianz—and millennials are the ‘biggest losers’ thanks to economic crises

Millennials, on the other hand, have been the “biggest loser” in the wealth race courtesy of “crisis after crisis,” the company’s 2024 Wealth Report reveals.

“A unique historical situation—strong economic growth, affordable housing markets and booming equity markets—allowed [Boomers] to build-up a handsome fortune,” wrote the insurance and asset management giant in the report released Tuesday.

Meanwhile millennials have been saving during the likes of the 2008 financial crisis, the COVID pandemic and a period of “really painful” inflation.

This has meant the returns they get on their squirreled-away funds have been significantly lower than that of previous generations, and the total nest egg they’ve saved during their lifetime is significantly less impressive.

In its report Allianz modeled a handful of hypothetical individuals across generations, tracking their savings returns—and corresponding wealth—throughout their respective economic cycles.

A U.S. boomer born in 1960, for example, with an annual savings rate of 10% over 40 years will have generated lifetime savings of more than 850% of their disposable income.

An American Gen Xer, meanwhile, who has saved at the same levels will now have a fortune worth 606% of their disposable income, with an annual return rate of 6.7%.

But even a gap of 200% between boomers and Gen X looks attractive compared with the deal millennials got.

A millennial born in 1984—who saved at the same rate as their parents’ generation—will see her total lifetime nest egg amount to just over 430% of her disposable income.

Of course, millennials still have a couple of decades to keep topping up their savings while they continue to work. Even then, Allianz suggests they will never accumulate the same levels of wealth as boomers themselves—netting 670% of their disposable income within their lifetime.

Gen Z—the youngest generation entering the workforce—fare better than their millennial peers, but not as well as the oldest generation.

An American Gen Z born in 2004 can expect their total savings are expected to amount to 766% of their disposable income in 2063, surpassing both Gen X and millennials.

That being said, “even with the same savings behavior, no generation can match the wealth accumulation enjoyed by the Baby Boomers,” Allianz writes.

New wealth dynamic

Boomers may be the wealthiest generation to have ever lived now, but there’s time yet for another group to take the mantle.

Who that will be remains up for debate, though.

Property broker Knight Frank is betting on millennials, saying courtesy of a $90 trillion ‘Great Wealth Transfer’ those aged between 28 and 43 years old at present will be the “richest generation in history.”

Allianz believes this theory has potential, but said the wealth passed down may be less than expected: “The day will come when the Baby Boomers bequeath their wealth to their children and grandchildren.

“Projections indicate that, in the US alone, more than $84 trillion in assets will be transferred to younger generations by 2045, with over $53 trillion of that wealth originating from Baby Boomer households. This sets the stage for Millennials to potentially become the richest generation in history—albeit not solely through their own endeavors.”

Gen Z are also in with a shout of exceeding millennials’ wealth, thanks to their own ventures and better economic conditions.

“Taking into account the end of the savings glut and the rising demand for capital to drive the green and digital transformations, Gen Z actually has a good chance to outperform all their predecessors—if they align their savings behavior to the new realities,” Allianz adds.