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The news contrasts with other generations, which report a more favorable outlook.
Heres whyboomers may feel they arent doing as well as they were in 2020.
Generational Financial Outlook
When surveyed, financial outlooks differed significantly by generation.
Millennial and Gen Z homeowners overwhelmingly said they were better off than four years ago.
These young adults were likely aided by athriving housing marketthat drove steep increases in home values.
Even renters in the two younger generations felt better off, with 52% reporting a favorable outlook.
On the other hand, baby boomers ages 60 to 65 were significantly less optimistic.
As Redfin Economics Research Lead Chen Zhao noted, many boomers may be living on a fixed income.
Inflation
People on fixed incomes may be especially vulnerable to inflation.
The inflation rate in 2020 was about 1.2%, but it skyrocketed to 8% in 2022.
Healthcare Costs
Another potential reason for boomers unfavorable financial outlook is rising healthcare costs.
Rising costs are driven by factors including an aging population and an increase in chronic conditions.
Market Instability
Compared to their younger counterparts, boomers may also be more affected by market fluctuations.
Concerned boomers should meet with a financial advisor to discuss risk tolerance and vulnerability.
As they downsize, they may have an untapped financial cushion.
Younger generations, however, continue to face unprecedented obstacles to entering the housing market.
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