Can You Guess Which Generation is Best Prepared for Retirement?
You may be surprised to learn that Baby Boomers — the generation already in or nearing retirement — are the least prepared for this next stage of life.
An article by Investopedia, citing the results of Vanguard’s Retirement Outlook, stated that just 40 percent of Baby Boomers are “on track to maintain their lifestyle during retirement.” Other generations aren’t much better, with Gen X and Millennials close behind at 41 percent and 42 percent, respectively. The study found Gen Z, at 47 percent, is best prepared.
You may be wondering why the generation closest to retirement is in the worst shape. The article explains baby boomers “are less equipped for retirement than younger generations due to retirement plan access and design.” According to Vanguard, many Baby Boomers “missed out on key changes to defined contribution (DC) plans, like 401(k)s, that occurred in the mid-2000s.”
This is one reason why it is crucially important that we work to save Social Security.
The Seniors Trust is committed to improving the well-being of older Americans. We are doing that financially by encouraging lawmakers to enact the Social Security Expansion Act. This landmark piece of legislation will give retirees an immediate increase of about $200 a month in benefits, a fair annual COLA, increased minimum benefits, and ensure the long-term solvency of the Social Security program.
