Despite Financial Gains During COVID-19, the American Dream Remains Elusive



Mix of Good and Bad

Since the COVID-19 outbreak began in 2020, US millennials have seen their collective wealth double. The Federal Reserve says millennials, born between 1981 and 1996, accounted for a combined $9.13 trillion at the end of last year. Looking at the same category in 2019, the number was $4.55 trillion.

Analysts note that millennials still lag behind older generations. Baby boomers, for example, are nearly eight times as wealthy. Gen X saw its combined worth climb by 65% during the pandemic. Plus, millennials aren’t out of the woods just yet. Home prices are soaring, inflation is rampant, rents remain sky-high, and mortgage rates are on the rise. Some economists warn stagflation could deal millennials a crushing blow in the years to come.

Searching for American Dream

While the generation’s wealth grew overall throughout the pandemic, 45% of millennials worry they will never reach their financial goals, according to a survey from Morning Consult. An even higher number said the American Dream is dead.

This could have something to do with retirement planning. A survey from Fidelity Investments shows 55% of millennials stopped saving for retirement during the pandemic. The same poll found 43% will have less in emergency savings this year, when compared to the pre-pandemic period.

How People Are Responding

In many ways, millennials are poised for success over the long run. The generation is considered the most educated in human history, and the information age makes financial information easier to access than at any earlier point. Still, many are clearly struggling financially.

One trend that appears to be at least partially linked to this dissatisfaction is what economists have called the “Great Resignation.” Upward of 4.5 million Americans quit jobs amid the pandemic in search of greener pastures. Employers have raised wages and started offering better benefits, which is a broad boost to millennials’ finances. Still, whether it’s a mix of perception or reality, the age group sometimes referred to as the “unluckiest generation” seems to be stressing its money situation.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22032502


All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.


TLS 1.2 Encrypted
Equal Housing Lender