Boomers' Wealth Helps Keep US Consumer Spending Strong as Younger Americans Face Growing Financial Pressure, Says Economist Ed Yardeni

Older Americans’ accumulated wealth may be helping sustain U.S. consumer spending even as younger households face greater financial pressure.

Economist Ed Yardeni, president and chief investment strategist at Yardeni Research, argues that generational differences help explain spending better than income differences alone. He calls this a "G-shaped economy," reflecting how older households’ assets may support spending while younger Americans face affordability pressure, CNBC reported on Monday.

Older Americans Report Greater Financial Confidence

A Principal Financial Group survey provided exclusively to CNBC found that 53% of baby boomers felt able to manage debt, compared with 42% of Generation X and millennials and 39% of Generation Z. Boomers also reported the highest satisfaction with their finances, at 41%, and 52% said they had enough financial knowledge to make confident decisions.

Yardeni said older Americans are living longer and remaining active, allowing some to spend on themselves, their adult children and grandchildren. Investments, retirement savings and home equity can also provide spending power.

Yardeni’s broader "G-shaped economy" argument is that baby boomers’ accumulated assets help explain consumer resilience. They held nearly $90 trillion in net worth in the first quarter of 2026, representing about 52% of U.S. household wealth. Their stock holdings, real estate, and retirement assets may support spending beyond what wage income alone would allow.

Wealth and Investment Withdrawals Diverge by Age

Federal Reserve data showed inflation-adjusted median net worth rose 37% between 2022 and 2025 among families headed by someone age 75 or older, while it fell 23% among families headed by someone under 35. Median income for the oldest group rose 24%, compared with 2% for the youngest, according to the report.

JPMorganChase Institute research found that 8.2% of individuals transferred money from investments to checking accounts during the three months ending in April, up from 4% in the same period in 2019. Those transfers equaled 6.8% of spending in April, compared with 3.5% in April 2019, the report added.

The findings align with economist Ed Yardeni’s argument that older Americans’ accumulated wealth helps sustain consumer spending. Chris Wheat, president of the JPMorganChase Institute and co-author of the report, said older people are more likely than younger people to withdraw money from investment accounts, partly because they have had more time to accumulate assets over their working lives.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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