A new study from The Pew Charitable Trusts, Retirement Security Across Generations: Are Americans Prepared for Their Golden Years?, examines the savings behavior of five age groups before the Great Recession. The research also explores how wealth losses during the recession affected each group’s retirement security by calculating replacement rates, or how much annual preretirement income households will have available to spend after retirement. It finds that early boomers (born 1946-1955) may be the last group on track to retire with enough savings to maintain their financial security through their golden years.
For the most part, generations in America have followed a similar storyline: kids grow up to earn more and become more financially secure than their parents and grandparents before them.
But that story ended with those born between 1965 and 1981, known as Generation X. - Business Insider
"Late boomers and Generation-Xers lost significant amounts of wealth during the Great Recession, eroding their already low levels of assets," said Erin Currier, who directs Pew’s economic mobility project. "As policymakers focus on Americans’ retirement security, particular consideration should be paid to how younger generations of workers can make up for these losses and prepare for the future."
Full Report(PDF)
This report explores how the Great Recession affected the wealth and retirement security of baby boomers relative to younger and older age groups.
It also explores the retirement security of each group by calculating replacement rates, or the extent to which retirees can use their accumulated wealth and savings to replace preretirement income.
This research reveals that younger age groups face the greatest prospect of downward mobility in their golden years.
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