Older Americans Are 47 Times Richer Than The Young

Parent Cafe
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<p><a href=“http://money.cnn.com/2011/11/07/news/economy/wealth_gap_age/[/url]”>http://money.cnn.com/2011/11/07/news/economy/wealth_gap_age/&lt;/a&gt;&lt;/p&gt;

<p>Older people are taking from the young through social security and medicare. Sad.</p>

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<p><a href=“http://talk.collegeconfidential.com/parent-cafe/1238377-wealth-gap-between-old-young.html[/url]”>http://talk.collegeconfidential.com/parent-cafe/1238377-wealth-gap-between-old-young.html&lt;/a&gt;&lt;/p&gt;

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<p>To me, it is scary if adults 65+ have a net worth of only $170K, since many can no longer work for many reasons; that would rapidly be consumed when they need additional help and/or care. Young adults have decades to acquire their net worth. I know many young people with higher net worth and some with negative net worth (huge education loans & some of them buy new cars, taking on additional debt).</p>

<p>Doesn’t explain whom all is included in the other figure–is that everyone from age 18 to 64? I would expect many young people just out of college would have negative net worth with all their education debt and perhaps auto loans. Are these figures averaged in, pulling down the average?</p>

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<p>The base for the young is so low small changes change the ratio by large amounts. Big deal. What about the sex gap? If I recall correctly…Not a bad trade.</p>

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<p>Here is the article from the source, ie the organization that actually performed the research and published the study. I am having a tough time believing some of these numbers. </p>

<p>[The</a> Rising Age Gap in Economic Well-Being | Pew Social & Demographic Trends](<a href=“http://www.pewsocialtrends.org/2011/11/07/the-rising-age-gap-in-economic-well-being/]The”>The Rising Age Gap in Economic Well-Being | Pew Research Center)</p>

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<p>And then in another article, or same one, I can’t remember, there was something about an upcoming study that was supposed to show that the number of seniors in poverty is at record levels. So what are we to believe?</p>

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<p>H and I went out to dinner with a 92yo man last week. We let him pay. ;)</p>

<p>(btw, he said he had paid for all 3 of this grandchildren’s college educations!)</p>

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<p>I expect the figures for under-35s are heavily skewed by student loan debt. The college education is not considered an asset, but the cost of paying for it is considered a liability.</p>

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<p>Too bad everyone can’t have rich grandparents.</p>

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<p>I know a LOT of people who are old and on fixed incomes and poor–have met a lot in our public health outreach clinics. There are also admittedly some uber-rich older folks who own real estate and other wealth, that can make the AVERAGE older person have high net worth. For example, if there are 100 people and 99 of them have an average net worth of 0 and one has 10 million, their AVERAGE net worth is $100,000. Averages and statistics can be used to make or obscure points, depending on who is using them for what.</p>

<p>Many of the elders I know who do have relatively high net worth may not have much in the way of LIQUID assets–much of it may be in their home, which needs maintenance & can get pretty high (especially when defered).</p>

<p>Many folks are grateful if they don’t have to help provide for their parents and/or grandparents as they age. Many elders do try to help as they are able.</p>