“The Forgotten Generation: Generation X Approaches Retirement,” Advisor Magazine
“new report from the National Institute on Retirement Security (NIRS) finds a dismal retirement outlook for Generation X, the first generation to enter the labor market following the shift from defined benefit pension plans to 401(k)-style defined contribution accounts. When looking at median retirement savings levels for Generation X, the bottom half of earners have only a few thousand dollars saved for retirement, and the typical household has only $40,000 in retirement savings. Retirement savings for Generation X is highly concentrated among the highest earners, while Blacks and Hispanics have substantially lower savings and access to retirement plans as compared to whites.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
Is the change from promised pensions to actual investment ownership really the cause of Gen X’s savings problem? Or is it just the opposite? Have 88 years of government entitlement promises (Social Security, Medicare and Medicaid to back them up) destroyed the sense of personal responsibility and risk avoidance that used to impel people to save and invest? Fewer guarantees from government, guarantees on the verge of collapse ironically, would benefit, not hurt, Gen X. Better get on with it though. The hour is late.
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