Finance

The Looming Crisis of the Generation of Baby Boomers

The middle-class in America has a lot to worry about – for many; the largest problem is what will happen to them when they are no longer members of the work force. Most will begin retirement and find out that they have not saved enough to provide a comfortable life. Some will even choose to put off retirement while others might not have that option to consider.

Baby boomers retirement

This is time for the baby boomers generation to reach retirement age. The near-total and rapid disappearance of defined-benefit pensions will leave this generation of workers ill prepared for what faces them. About one-third of all retirees will have no savings at all and those who do have savings will not have enough. The average household retirement savings for most retirees aged 55 to 64 amounts to approximately $14,500. Now when considering that the average 65 year old in the United States can expect to live almost 20 more years and the problem begins to come into focus and many will find they simply did not save enough.

Social Security

social security for baby boomers

What about Social Security? For most retirees, Social Security is not enough to rely on. The average payment monthly is around $1,300. If you add a pension payment to Social Security there still is not enough to have a stressless retirement. And there are many companies that no longer have retirement plans. With no saving the baby bloomers’ retirement crisis gets even worse.

What about savings

There needs to be some easy way to convince the youngest in the work force- age 20 to 30, the importance of saving for retirement. But this is also the age when retirement is the last thing these workers are thinking about. They are too busy raising a family and building a career to be thinking about saving for retirement.

How to plan for retirement should be a course that every high school student or every new worker should have access to with more in-depth coverage of this subject.