4 Things Gen Z Gets Wrong About Boomers and Their Finances
Written by
Kerra Bolton
Edited by
Zuri Anderson
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Gen Zers often use the phrase “okay, boomer” to dismiss condescending or out-of-touch comments from baby boomers.
However, many baby boomers are not okay — then and now. While boomers benefitted from certain economic advantages, they also faced inflation, recessions and shifting job markets.
“Gen Z often views baby boomers’ wealth as a neatly organized bookshelf,” said Kraig Kleeman, founder and CEO of The New Workforce, an outsourcing company. “But peel back the covers, and you’ll find rising healthcare costs and longevity concerns scribbled in the margins.”
Here are the four things Gen Z gets wrong about boomers and their finances.
Retirement Is Easy
Baby boomers need more money to retire today than retirees did in the 1970s. The average monthly Social Security benefit in 1975 was nearly $200 compared to about $1,900 for retired workers today.
“Many baby boomers are facing rising health care costs and outliving their savings,” said Kevin Connor, founder and CEO of Modern SBC, a strategic branding and communications company. “People are living longer these days, which is great. But it also means that retirement money needs to last 25 or 30 years.
“Many (baby boomer) kids growing up simply didn’t think about it. That’s why we still see so many baby boomers working past their 70s. They’re trying to make ends meet.”
Boomers Had Job Security
According to an American Staffing Association survey, 37% of Gen Zers said they were worried about losing their job before the end of the year, compared to only 11% of baby boomer workers.
While baby boomers experienced fewer job changes and a more stable job market than Gen Zers, the generation generally began their professional careers during the 1970s when high inflation, stagflation and high energy prices changed America’s monetary policies.
“Imagine trying to save when every paycheck feels stretched thin,” Kleeman said. “They faced limited job opportunities but build resilience out of necessity. Gen Z, on the other hand, enjoys a more flexible job market and generally lower inflation rates. But that doesn’t mean the financial pressures are any less real — just different.”
Boomers Paid Less for Everything
Inflation reached record levels when boomers were beginning their careers and families during the 1970s and early 1980s, peaking at 13.5% in 1980 compared to an average of 2.7% in November.
Connor said the prices for everyday items like food, gas and rent seemingly rose overnight.
“If you think today’s prices are high, baby boomers saw their wages fall in real time because their money was no longer useful to them,” Connor said. “Buying a house or getting a business loan wasn’t the deal you might think.”
Boomers Are Wealthy
Homeownership, a social and economic indicator of wealth, was more attainable for boomers than Gen Zers.
According to data collected by Madison Trust, a self-direct IRA company, the average price for a single-family home in 1974, when most boomers would have bought their first house, was $236,624, when adjusted for inflation. The average price for a single-family home in 2023 was $492,300.
“They (boomers) could buy a house with a single mortgage and see its value grow steadily,” Kleeman said. “Today, Gen Z is up against skyrocketing home prices and a gig economy that doesn’t always offer the same stability.”
While boomers had it easier getting affordable housing in their 20s and 30s, they also faced many of the same rising costs as everyone else today while living on a fixed income.
“Many boomers are dealing with financial strain even after decades of work,” Kleeman said. “It’s not all smooth sailing, and understanding this helps bridge the empathy gap between generations.”
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