Millennials born in the 1980s may never financially rebound from the Great Recession and are at risk of becoming a 'Lost Generation,' according to a report by the Federal Reserve Bank of St. Louis.

Researchers set out to explore the connections between a person's birth year and his or her family's financial health. They found that the net worth of an average family headed by someone born in the 1980s remained 34 percent below expectations in 2016 – the most recent year for which data is available.

By comparison, people born in the 1970s were 18 percent below their expected benchmark, and people born in the 1960s were 11 percent behind.

People born in the 1980s have fallen far behind expectations for wealth accumulation. This graphic shows that generation (in purple) lagging behind all prior generations

'The Great Recession and its aftermath significantly widened the wealth gap between young and old,' the study said.

After studying families led by people born over six decades – starting with the 1930s and ending in the 1980s – researchers found that families with heads of house born in the 1960s and later experienced the greatest wealth losses following the recession of 2008. Those born in the 1960s, 1970s and 1980s still hadn't gotten their finances back on track by 2016.

It's not a very exciting prescription, but be realistic, manage down your debt as quickly as possible and continue to save and plan to save for the long term. - Bill Emmons, Federal Reserve

But it was families led by people born in the 1980s who were worst off in terms of wealth accumulation nearly a decade later. Unlike all other generational groups, the typical 1980s family actually fell further behind from 2010-2016 - which was otherwise 'a period of rapidly rising asset values that buoyed the wealth of all older cohorts,' the study said.

Those born in the 1980s are 'are at substantial risk of accumulating less wealth over their life spans than the members of previous generations,' the study said.

The problem for people born in 1960 and later wasn't due to low incomes, but more likely caused by debt and homeownership. The average family led by people born in the 1980s and 1970s are expected to have higher debt burdens at any given age than all other generations studied – and that debt is less likely to be from a mortgage and more likely to be from student loans, auto loans and credit card debt.

Fewer than 45 percent of the Millennials owned homes by 2016 – below expectations.

'The fact that many families suffered large wealth setbacks during their prime earning and wealth-accumulation years raises the question of whether they will be able to rebuild their wealth to meet major saving goals, including for a home purchase, college tuition for their children and retirement,' the study said.

Median income grew consistently for people age 62 and older between 2010-2007, but those born in the 1960s, 1970s and 1980s saw decreases in income over that period. Wealth gaps across education levels, races and ethnicities and age groups remained large

There is some good news: People born in the 1980s have lots of time to catch up financially, and they are the most educated generation with the highest earning potential.

Even so, it remains unclear if 1980s Millennials will ever be able to have their earnings and savings offset their debt.

'That is possibly just wishful thinking,' said Bill Emmons, an economist with the St. Louise Federal Reserve. 'It by no means is certain that having more time to catch up means that it will actually happen.'

The challenges are compounded by the fact that prices are high on major assets – such as real estate – and it's unlikely anyone buying into the market for the first time will see significant returns on their investment, Emmons said.

'Don't count on very rapid gains in stock prices or house prices to bail you out,' he said. 'It's not a very exciting prescription, but be realistic, manage down your debt as quickly as possible and continue to save and plan to save for the long term.'

Researchers used data from nearly 48,000 families born throughout the 20th century, focusing on families headed by people between the ages of 24 and 80 years, both before and after the financial crisis of 2008-09.