Dream of Retirement Just for Baby Boomers
Retirement has long been a dream of many generations, but in this uncertain economy, this dream might be dashed for many. According to a study by the Employee Benefits Research Institute released on March 29th, retirement definitely looks to be just a pipe-dream for many baby boomers, and also for the younger generation. A DC think tank recently reported that nearly half of surveyed workers have little confidence that they have enough saved for even a decent retirement. Among the workers that were surveyed, 57% said their household savings value was less than $25,000.
USA Today said that the retirement worry was the highest in 23 years, and the Wall Street Journal said: “Americans more downbeat than ever about retirement…” These retirement fears are a depressing thought, but a reality for many who just don’t know where their retirement money will come from. Americans are overwhelmed with the many commercials for retirement planning, strategies and other media outpouring on retirement.
The American economy is only now starting to recover from the worst decline since the 30s, and even though there is some recovery, U.S. baby boomers and younger people are still worried about retirement and having enough money to live on once they reach their retirement age.
Hopefully, the finances of the senior population, and that of the younger generation, will improve in coming years thanks to the regeneration of stocks, the housing market, and the labor market. Also, baby boomers in their 50s who are still working should start to focus on saving more for their retirement.
There are many studies that look at the finances of the aging population that are less pessimistic than others; for example, these studies look at household finances as a pyramid, with the components of said pyramid being Social Security, homeownership, traditional benefit plans like 401(k)s and employer sponsored retirement plans.
In short, many boomers and those in the younger generation will soon start putting more and more in their savings for retirement, and will even work harder in order to put more of their income towards retirement.