Older households in Europe are 8 times wealthier than younger ones — Al Jazeera

In 22 European countries, the median net wealth of households headed by people under 35 is about €25,000, while for the 55–64 age group it reaches approximately €208,000. The difference exceeds eightfold, according to data from a European Central Bank survey reported by Al Jazeera.

Distribution of wealth by age

The Household Finance and Consumption Survey has been conducted by the ECB and national central banks since 2010. It covers eurozone countries as well as the Czech Republic and Hungary, and accounts for household assets minus debts. Net wealth includes real estate, cars, valuables and savings.

Households headed by people under 35 own only 2.8% of the total wealth in the countries studied. The largest share, 24%, belongs to the 55–64 age group. In Finland, younger households hold 0.8% of wealth, while households headed by people over 55 hold more than 71%. Low shares for young people were also recorded in Ireland at 1.4%, Austria at 1.6%, Greece at 1.8% and Germany at 2%.

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Differences between countries

In Central and Eastern European countries, wealth is distributed more evenly among age groups. In Lithuania, households under 35 own 13.2% of total wealth, while the 55–64 group owns 15.9%. The share of younger households is 12.3% in Croatia, 10.1% in Slovakia, 9.8% in Estonia and 11.1% in Malta.

Rising cost of living

Since 2000, prices for everyday goods and services, including food, energy, transport and utilities, have risen by 67.2% in the eurozone, Hungary and the Czech Republic. According to Eurostat, the largest increase was recorded in Hungary, where prices more than tripled. Until 2022, prices rose by about 2% annually on average, while annual inflation in the EU reached 9.2% that year, mainly due to energy costs.