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:

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. 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. 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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If you're looking for a smoking gun in this generational wealth reversal, Wolff points to housing. The oldest group not only owned homes at higher rates — they had far less debt on them. That translated into more equity, more stability, and fewer financial vulnerabilities during downturns. Their rising stock exposure didn't hurt either.

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In 2022, households headed by someone age 75 or older had an average net worth of about $1.62 million, according to the Federal Reserve Board's Survey of Consumer Finances — a marked jump from younger cohorts. That's the latest available data from the Fed, with the next round not due until 2026.

Meanwhile, in early 2025, nearly 79% of households aged 65 and older owned their homes, according to the U.S. Census Bureau — the highest homeownership rate of any age group. For older Americans, that home isn't just shelter — it's often half or more of their entire net worth, especially among middle-income households. It's not hard to see why: they bought early, paid off the mortgage, and watched their property values soar.

It wasn't just Wall Street, but Main Street — or rather, their street — that made older Americans rich.

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This article Older Americans Have Become The Nation's Hidden Millionaires—Their Wealth Soared 81% But it Wasn't Wall Street That Made Them Rich originally appeared on Benzinga.com

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