US wealth gap widens as oldest families pull ahead, youngest fall behind

The Federal Reserve's latest Survey of Consumer Finances reveals a widening wealth gap in the United States, with older families outpacing younger generations in accumulating wealth. In 2025, families headed by someone aged 75 or older now hold the highest median net worth, soaring to $3.6 million, a 31 percent increase from 2022.

These oldest families saw their median wealth climb to nearly $505,000, up from just over $367,000 in 2022. The richest one-tenth of American families enjoyed a robust 31 percent jump in median net worth to $3.6 million during this period.

In contrast, the youngest families experienced a 23 percent decline in median net worth, reporting $33,000. This downward trend marks a stark reversal from three years ago when families aged 65 to 74 held the top position. The average wealth for the oldest age group rose 10 percent to $1.96 million, reflecting the wealth concentration at the higher end. The median net worth of the wealthiest one-tenth surged 31 percent, while the middle fifth of families saw the largest income gains.

However, this widening wealth inequality is accompanied by a surge in financial struggles among lower-income Americans. Nearly 20 percent of US families reported being late on a loan payment in 2025, up sharply from 12.2 percent in 2022. Moreover, the proportion of families allocating 40 percent or more of their incomes to debt payments jumped to 8.6 percent, the highest level in at least 12 years.

This rise in debt burdens, coupled with higher inflation and interest rates, underscores the disproportionate impact on lower-income families.