Europe’s wealth gap: Older households eight times richer than young ones

What the report says

Al Jazeera reports that growing anger over living costs, rent and cuts to public services has helped fuel student protests in France and more than 11 other European countries since September. Against that backdrop, the outlet says new household-wealth data show a sharp generational divide across Europe, with younger adults holding only a small share of assets compared with older households.

Using the European Central Bank’s 2023 Household Finance and Consumption Survey, Al Jazeera says households headed by someone under 35 have a median net wealth of about 25,000 euros, while those headed by 55- to 64-year-olds have about 208,000 euros, more than eight times as much. Across 22 European countries covered in the analysis, under-35s hold 2.8% of total household wealth, while the 55- to 64 age group holds the largest share at 24%.

The gap is especially wide in some western and northern countries, including Finland, Ireland, Austria, Greece and Germany, while the distribution is more even in parts of Central and Eastern Europe such as Lithuania, Croatia, Slovakia and Estonia. Al Jazeera also links the divide to housing costs, noting that rising rents and purchase prices have made it harder for younger people to build wealth.

The article adds that consumer prices for everyday goods and services have climbed sharply since 2000, with the biggest increases in parts of Eastern Europe. That broader cost pressure helps explain why the wealth gap has become a political issue, particularly for younger Europeans who say they are less optimistic about their financial future than previous generations.