LES BOOMERS ONT-ILS VERROUILLÉ LE PATRIMOINE DES JEUNES ?

Over 9,000 billion euros are set to be transferred by 2040 through inheritances, a phenomenon that increasingly sees wealth accumulated more through inheritance than through work in France. This raises questions about intergenerational equity and the future of wealth distribution. This third episode of the series "Did Boomers Have an Easy Life?" explores patrimony, comparing the ease with which Boomers accumulated wealth to that of today's 30-somethings, and the potential impact of this massive wealth transfer on inequality. The early 1980s, when the first Boomers entered their thirties, was an economically challenging period. France was emerging from the "Thirty Glorious Years," marked by the oil shocks of 1974 and 1979, which led to a significant slowdown in growth, high inflation, and a general degradation of the economic environment. This impacted purchasing power and living standards, with the median and average standard of living growing by only about 0.7% per year between 1979 and 1990. Despite these tensions, the real standard of living did not completely collapse and remained relatively stable, even superior to its 1975 level by the mid-1980s. This period, while not easy, offered more favorable conditions for building wealth than exist today. Several factors contributed to this: First, an earlier entry into adult life. The 1945 generation completed initial training around 17, while the 1990 generation finished studies around 21. The average age for a stable first job rose from 20 in 1975 to 27 today. Earlier entry allowed more time to save, buy, repay, and reinvest. Second, a different position for young people in income and salary scales. In 1979, the average net income of 30-34 year olds was 9% higher than that of 50-54 year olds. By 2019, it was 13% lower. For example, 30-year-old graduates of the 1950 generation earned 120% of the average salary in the early 1980s, compared to 80% for 30-year-old graduates of the 1970 generation. Third, increasing access to property for young adults. The proportion of homeowners among 25-39 year olds rose from 28% in 1968 to 39% in 1982. This was crucial because housing was already central to household wealth, allowing early buyers to transform an expense into an asset. Fourth, household budgets allowed more room for saving. Pre-committed expenses, including housing, represented 22% of gross disposable income in 1980 (17% for housing). In 2024, these figures are 30% and 23% respectively, making it harder to save from earned income. Fifth, inflation helped reduce the real burden of credit faster. High inflation in the early 1980s, followed by deceleration, meant that fixed mortgage payments became lighter over time as nominal incomes increased, unlike today's longer, less flexible credits. While the Boomers' early adult years were not an "age of gold," they provided conditions more conducive to early wealth accumulation, particularly through property acquisition. This initial advantage was amplified after 2000 by exploding real estate prices. Today, 30-somethings face a starkly different reality. While they can still build wealth, the path is much harder. Households with a reference person aged 30-39 hold an average gross wealth of €265,000, but they also carry significant debt, averaging €78,900 at age 30 and €91,300 at age 35. Almost 50% are indebted for real estate. Unlike the Boomers, today's credit environment is structurally more constrained: housing is relatively more expensive, loans are longer (average duration increased from 14 years in 1975 to 23 years in 2025), and do not lighten as quickly. The property price-to-income index has risen over 70% between 1975 and 2025. The capacity to save from work is also diminished due to higher pre-committed expenses, especially for housing. Wealth building depends on what remains after these expenses, which is less today, even as wealth accumulation demands more debt and time. Professionals note it is nearly impossible to build wealth solely from work income anymore. The composition of wealth in France in 2024 shows 61% in real estate, 22% financial, 11% professional, and 6% residual. This wealth is highly concentrated, with the top 10% holding 48% of gross wealth, and the top half holding 93%. The average wealth of the richest 10% is 464 times that of the poorest 10%. This concentration directly affects the younger generations' ability to accumulate wealth. The real divide now is not just about inheritance, but about who receives early financial assistance to buy or invest. Studies show that receiving a gift or inheritance increases the probability of buying a first home by 15 percentage points. Four out of ten young homeowners report receiving help before or during their purchase. Family assistance is no longer a detail but a key, even a condition, for accessing wealth. This means today's 30-somethings acquire wealth later, with longer and heavier debts, in a housing market disconnected from incomes, and in a society with greater wealth inequality. The possibility of building wealth through work has become more fragile and unequal. Elderly households (50-79 years old) hold 61% of total wealth, despite representing 50% of households. This concentrated wealth is set for massive intergenerational transfer in the coming decades, estimated at several thousand billion euros over the next 20 years, accelerating in the 2030s and 2040s. However, not everyone will benefit equally. Boomers, born between 1945 and 1964, have 20% higher wealth than previous generations at comparable ages. The median net wealth of 30-somethings, which was 45% higher than those over 70 in 1986, became three and a half times lower by 2015. The average age of inheritance has also shifted significantly, from 43 in the early 1980s to around 52 in 2020, and potentially 60 by 2070. In the 19th century (1820), one inherited at 25 on average; today, it’s 60. Inheritance is becoming a point of arrival, not a starting point. This means that by the time many households need capital most (for buying a home, starting a business), a large majority have received nothing. Households that have inherited tend to have significantly higher wealth and income. Those receiving over €100,000 in inheritance or gifts have 20-30% higher current incomes. This highlights the paradox: the coming wealth transfer, while immense, risks exacerbating inequalities because inheritance is regaining a central role in wealth formation. The share of inherited wealth in total wealth has risen from 35% in the early 1970s to 60% today, mirroring 19th-century society. The ratio of net wealth to disposable income has also soared, from 4.5 years of income in the early 1980s to 8 years today, primarily benefiting seniors. Longer lifespans mean seniors need to retain more savings for security, leading to fewer or later donations. Wealth is increasingly dependent on what one receives from family rather than what one builds through personal income. Three mechanisms are observable: 1.