Let’s talk about savings – or more specifically, why your parents might have more (or less) stashed away than you do, and why your younger cousin might not be saving much at all. Personal choices obviously play a big part here, but that’s not all that it is about. It turns out, the economic era you grew up in plays a huge role in how much you save, what you can afford and how you even think about money.

Let’s take a look at how housing prices, wage growth and interest rates have saved each generation’s ability to save.

Baby Boomers (Born 1946-1964): The Era of Growth

Often seen to be the most financially secure generation today, many ‘Boomers’ are sitting on six-figure retirement savings – although, again, not all, as this is dependent on life circumstances.

Why?

• Housing was affordable: Many ‘Boomers’ bought homes in the ’70s or ’80s where housing prices were relatively low compared to incomes. Fast-forward to today, and that same property might be worth 10 times more
• Strong wage growth: ‘Boomers’ entered the workforce in an era when wages grew steadily and jobs were often for life. There was more stability, and a rising tide tended to lift all boats
• High interest rates (eventually): Though they started low, interest rates in the ’80s soared. While that was tough for borrowers, savers benefited from high returns on savings accounts and term deposits.

In short, generalised terms, ‘Boomers’ had the perfect combo: affordable homes, solid jobs and decent returns on their savings. That helped them build wealth steadily.

Generation X (Born 1965-1980): The Sandwich Generation

Savings for Gen X is often significant, but many are still juggling mortgages, kids and aging parents at the moment – so savings can vary widely.

Why?

• Caught between eras: Gen X entered adulthood just as housing prices started climbing faster than wages. They didn’t have the same tailwinds as ‘Boomers’, but they weren’t hit as hard as Millennials
• Stagnant wages: While still generally better off than younger generations, Gen X saw a slowdown in wage growth through the 1990s and 2000s
• Tech boom and bust: Gen X got caught in both the dot-com boom and bust. Some benefited from early tech investments, others lost a lot

This generation is often called the ‘sandwich generation’ – saving for retirement while supporting kids and parents. That doesn’t leave a lot of room for stacking cash.

Millennials (Born 1981-1996): The Hustle Generation

Savings are much lower than ‘Boomers’ or Gen X at the same age, and many are still catching up!

Why?

• Skyrocketing housing costs: Millennials came of age during (or just after) the 2008 financial crisis, only to face one of the least affordable housing markets in modern history
• Low wage growth: Millennials entered the workforce during a weak labor market, and wage growth hasn’t kept up with living costs
• Low interest rates: Good for borrowing, terrible for saving. Millennials missed out on the high-interest accounts that helped ‘Boomers’ grow their nest eggs

Despite these obstacles, Millennials are great at budgeting, side hustles, and creative income streams. Many are investing earlier than previous generations – just with less to start form.

Generation Z (Born 1997-2012): Starting Strong, But in a Tough World

It’s still early days for Gen Z, but early signs show that they are cautious, budget-conscious and more financially literate than one might expect.

Why?

• COVID and cost-of-living pressures: Gen Z entered adulthood in a world shaken by a pandemic and economic uncertainty. Jobs are more flexible, but also less secure
• Financial literacy via TikTok: Believe it or not, this generation has absorbed a tonne of money tips though social media. They’re investing early, learning fast and questioning the 9-to-5 norm
• Still priced out of housing: Like Millennials, many Gen Zers are struggling to imagine home ownership. That makes long-term financial stability harder to visualise – and save for.

The economic landscape for Gen Z is full of both challenges and opportunities. The tools are there, but so are the hurdles.

The Big Picture

When we talk about savings, it’s tempting to compare numbers across generations. But that only tells part of the story. The economy has changed – alot! And it shows when you look at expected savings at a retirement age.

Generation	Estimated Retirement at 65	Home Price-to-Income Ratio	Avg. Wage Growth	Avg. Savings Interest Rate
Boomers (Retired)	$250,00 – $400,00+	~3:1 (1970s-1980s)	3-4%	5-10%
Gen X (Retiring ~2030s)	$200,000 – $350,000	~4:1 (1990s-2000s)	2.5%	2-5%
Millennials (Retiring ~2040s-50s)	$120,000 – $250,000 (projected)	~6-8:1 (2010s-2020s)	1.5-2%	0.5-2%
Gen Z (Retiring ~2060s +)	$90,000 – $200,000 (projected)	~8-10+:1 (2020s-2030s)	TBC	0-1.5%

Estimates are based on current savings trends, adjusted for inflation and wage patterns. Home price ratios reflect medians prices vs. median income during each generation’s primary home-buying years.

So before we judge who is “good with money” and who isn’t, let’s remember that each generation has had to play a different economic game – with different rules, and we are all learning these rules as we go.

Savings are personal, but they are also deeply shaped by the times that we live in. Understanding that helps build empathy across generations – and who knows, it may even help build better policy decisions. I am drawing the conclusion that if you are saving anything at all these days, you are doing just fine.