The midlife crisis looks different for millennials
The Future. As millions of millennials turn 40 this year, many will likely go through some form of a midlife crisis. However, they could respond to it differently than previous generations by splurging on experiences and averting divorce.
Not buying a Porsche 911
The newest generation to reach middle age has less money and different lifestyle preferences (including fewer marriages and children) than their parents.
- The average 40-year-old millennial earned $49,000 in 2021, compared with the inflation-adjusted $43,000 Gen Xers earned at the same age. But the rising cost of living has made them less well off.
- Millennials account for 7% of the US total wealth, compared with the 22% boomers held at similar ages.
- Only 44% were married in 2019, compared with 61% of Gen Xers and 53% of boomers who were married at similar ages. The lower marriage rate is one reason millennials have fewer children than prior generations.
- 72% of millennials prefer to spend on experiences rather than material things.
Buying the trip of a lifetime instead
Without childcare obligations holding them back, millennials could afford the experiences they love when they hit middle age — and enjoy the freedom to move wherever they want. Avocado toast included.