Older Americans Have Become The Nation's Hidden Millionaires—Their Wealth Soared 81% But it Wasn't Wall Street That Made Them Rich
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For decades, the wealth gap in America has been framed as a generational issue. But new research shows the story might be more surprising than expected — especially for those over 75.
According to Edward N. Wolff, an economics professor at New York University and longtime inequality researcher, the real winners in the wealth game between 1983 and 2022 weren't the up-and-coming tech crowd or Wall Street traders. They were retirees.
In a study published by the National Bureau of Economic Research in August, Wolff documents a "sharp rise" in the relative household wealth of Americans aged 75 and older — and an equally sharp decline for everyone else. The title says it all: The Extraordinary Rise in the Wealth of Older American Households.
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From 1983 to 2022, all age groups except the 75 and over cohort saw their average net worth slip relative to the overall mean. Meanwhile, that oldest group didn't just keep up — they surged ahead, increasing their average wealth by 81% in inflation-adjusted dollars .
And no, this wasn't just a lucky bull market windfall.
Wolff attributes the seismic shift to three major forces:
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Homeownership: While ownership rates for younger Americans dropped, the 75 and over group actually saw theirs rise by 11.5 percentage points between 1983 and 2022.
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Low Debt: Their debt-to-net-worth ratio fell over time and landed at a remarkably low 3.2%, compared to a steep 65.4% for those under 35.
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Stock Holdings: The value of stocks directly and indirectly owned, such as IRAs, 401(k)s, mutual funds exploded. The 75 and over group's stock portfolio jumped from 0.56 times the national average to 3.47 times the national average over the same period.
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Despite these gains, Wolff is careful not to imply that all older Americans are rolling in money. The paper doesn't claim the elderly are uniformly wealthy — only that, on average, their relative wealth surged compared to other groups. This makes them, effectively, the "hidden millionaires" of the economy.
Meanwhile, younger households — especially those under 35 — struggled. Their homeownership rate remained flat over the entire four-decade period. Their mortgage debt ballooned. And while their net worth did rebound in 2022, it was still a fragile recovery following years of stagnation.
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