About 74.2 million millennials live in the United States, making them the largest adult generation in the US. And many of those millennials feel “late” to the wealth-building game. This generation entered, or struggled in, the job market during the Great Recession and faced a slower start to earnings and homeownership than their parents. For years, the data reflected this gap; by their mid-30s, many lagged baby boomers and Generation X in wealth accumulation and real estate purchases.

But today’s data suggests a more positive story. Recent Federal Reserve analysis shows that older millennials’ balance sheets now exceed long-term model expectations. This shift most likely reflects better savings habits, growing investment participation, and higher earnings among millennials.

Yes, inflation and housing affordability remain challenges, but millennials may have opportunities to strengthen their financial position. At VestGen, we see a generation with significant momentum and a great amount of time to build upon their long-term financial future. Here are some moves millennials can make today that might have significant financial impacts on their futures. 

Maximize Retirement Accounts

Small increases can add up over time. Retirement plans remain one of the most powerful financial tools. Facts to keep in mind for 2025 and 2026 include:

• 401(k) employee limit: $23,500
• Catch-up (50+): $7,500
• Starting in 2026: Catch-ups for those earning $145,000+ must be made as Roth contributions, offering long-term tax-free growth

Invest Beyond the Workplace Plan

Your employer’s 401(k) plan can help you save for retirement, but a taxable brokerage account can serve as additional financial support. This automated investing can help you:

• Shape liquidity for a future home
• Save for medium-term goals
• Invest without early-withdrawal penalties
• Stay disciplined through market cycles

Manage Debt Intentionally

Millennials carry more student debt than previous generations, but paying down high-interest debt helps you:

• Redirect freed cash to retirement, homeownership, or investing
• Reduce financial stress and anxiety

The Current Real Estate Bubble and the Future Wealth Transfer

The housing market still feels out of reach for millions of millennials. But waiting to purchase a home can be a strategic move. During this time, you can save for a larger down payment, strengthen credit, increase liquidity, and grow investments. This preparation may help avoid becoming “house-rich, cash-poor,” a challenge many boomers have faced.

Over the coming decades, trillions will pass from older generations to heirs. But inheritance alone doesn’t create long-term financial stability; structure and planning do. A strong, dedicated financial plan may help millennials handle future wealth more responsibly, potentially reduce major tax mistakes, and generally guide inherited assets toward their long-term goals.

The bottom line? Not all Millennials are behind. If you’re in this age group, you’ve entered what many consider your prime earning years. At VestGen, we proudly help multiple generations, or standalone clients, plan for their lifestyle, family, and legacy goals. If you want to improve your finances but are unsure where to start, consider connecting with a VestGen advisor to explore your options.