On paper, our generation has never looked wealthier. Baby boomers now hold nearly $90 trillion in household wealth, more than twice what Gen X holds, and more than four times what Millennials have accumulated. That is according to Federal Reserve data from 2026. We make up just 20% of the population, yet we control more than half of the nation’s household wealth.
So why does retirement feel so tight for so many of us?
The answer, experts say, is that wealth on a balance sheet and money in your pocket are two very different things.
“Someone’s net worth and cash flow are two very different things,” Ashley Morgan, a bankruptcy and debt attorney based in Northern Virginia, told Fortune. She works with consumers facing financial and credit problems and she sees this disconnect every day.
The Wealth Gap Within Our Own Generation
That $90 trillion is not spread evenly. The top 10% of boomer households controlled 71% of the generation’s total wealth in 2022. At the other end of the spectrum, nearly a third of Americans 55 and older have no retirement savings at all. Of those who do have savings, about half have put away less than $100,000.
And debt is part of the picture for many. Experian data show the average boomer carries $92,619 in debt, mostly from credit cards. Over half of households headed by someone 75 or older were carrying debt in 2022, up from 41.3% just a decade earlier, according to a separate Federal Reserve analysis.
“We’re seeing more and more people carrying high-interest debt later in life,” said Michael McAuliffe, president of Family Credit Management, a nonprofit that helps people manage debt. “Which becomes a much bigger problem for them when they retire, and their income is fixed.”
When the Paycheck Stops, the Bills Don’t
Morgan says she regularly meets older clients who have significant home equity or retirement savings and who are also juggling credit cards, car loans, and other monthly obligations at the same time.
Home equity has been a particular source of confusion. Decades of rising home prices left many older homeowners sitting on valuable properties. But that value does not become spendable money unless you sell the home or borrow against it.
“Home equity has also created a false sense of financial security for some households,” Morgan explained.
Older Americans are increasingly tapping that home equity. Balances on HELOCs (home equity lines of credit) have risen 20% from their late-2021 low, after nearly 13 years of decline, according to the New York Fed. Of the roughly 1.8 million HELOCs originated in 2023 and the first half of 2024, about 57% went to borrowers aged 50 and older.
But even selling the house outright is not always a clean solution. A large capital gain from a home sale can trigger a Medicare surcharge known as IRMAA, which can push monthly Medicare premiums up by hundreds of dollars.
Rising Costs That Nobody Budgeted For
Morgan says higher property taxes and healthcare costs have pushed some retirees well past what they planned for when they first mapped out their retirement. Medicare premiums have climbed faster than both general inflation and Social Security’s own cost-of-living adjustment.
Long-term care costs have climbed even faster. Home care prices rose 7.9% over five years, nearly triple the rate of medical inflation. Nursing home costs jumped 25% between 2019 and 2024. Over-65 households saw income grow just 22% over that same period, meaning costs have outpaced what most of us are bringing in.
When monthly expenses outrun retirement income, Morgan says, some people who saved responsibly for years are now turning to credit cards to fill the gap.
Helping the Kids at a Cost to Yourself
There is one more factor pushing some boomers into financial strain: supporting their families. Morgan says it is not uncommon to see older clients taking on debt or delaying their own savings to help children and grandchildren pay for college, childcare, and other expenses.
“Unfortunately, we often see people borrow money to help support their kids and grandkids,” Morgan said. “Some Boomers are still working for years because they cannot afford to stop working.”
It is a tension a lot of us know well. The desire to help the people we love, up against the reality of a fixed income and a budget that is already stretched thin.
