Explosive Wealth Concentration in 70+ Year Olds (Patreon)

Even though US Data, I am pretty certain it is similar all over the western world.

This graph shows how much of America’s total household money and stuff (like houses, savings, and investments) is owned by people aged 70 and older. It covers a long window time, from 1989 to the end of 2024, and the data comes from the Federal Reserve.

Back in 1989, people 70 and older had about 19% of all the household money in the U.S. That stayed pretty close to 20% until 2007. But after 2007, their share started going up a lot, and by the end of 2024, they had 31.4%—a big jump!

Why Did It Go Up So Much After 2007? I will give my theory!~

A big group of people called Baby Boomers (born between 1946 and 1964) started turning 70 around 2016. By 2007, they were already in their 50s and 60s, saving up money, owning homes, and investing for a long time. As they got older, they kept more of the country’s money.

Tough Times for Younger People: 2008/09 the Global Financial Crisis hit. Younger people had a harder time—they lost jobs, didn’t earn as much, or had school debt. But older people already had things like houses or savings that grew in value over time with money printing.

How Much Money Are We Talking About?

Let’s make the numbers super simple:

In 2007: All the household money in the U.S. added up to about $65 trillion (that’s a huge number!). The 70+ group had 20% of that, which is like $13 trillion.

In 2024: By the end of 2024, all the household money in the U.S. grew to about $160 trillion (even bigger!). The 70+ group now had 31.4% of that, which is about $50 trillion.

That’s $50 trillion minus $13 trillion, which is $37 trillion more. 3X