WASHINGTON (CBS) – Young people today are in much more financial trouble than their parents were at the same age, according to a new report.
Advocacy group Young Invincibles shared new research on Friday that said millennials are currently earning roughly $10,000 less than baby boomers were at the same age. That’s a drop of about 20 percent.
The numbers show that in 1989, 25-34-year-olds were making $50,910 annually. In 2013, it was $40,581.
In addition, the report finds that young people have a net wealth that is only half of their parents at the same age. The group also says that when baby boomers were young people, they had twice the number of assets that millennials do today.
“These findings uncover that Millennials have been set back significantly, by not just the Great Recession but by decades-long financial trends, resulting in major generational declines in financial security between Millennials and Baby Boomers when they were the same age,” said Tom Allison, Deputy Director of Policy and Research for Young Invincibles, in a statement.
Key factors behind the financial gap include “stark and disturbing disparities in wealth across racial groups,” Young Invincibles said. Millennial African-Americans and Latinos earn 57 cents and 64 cents, respectively, for every dollar that young white people earn, the report found.
The findings in this report seem to line up with another recent study out of Harvard University, which said millennials are much less likely to out-earn their parents.