Gen-Xers and Late Baby Boomers Financially Challenged to Retire

Recession Will Haunt Gen-X Into Retirement reports that Gen-Xers (born 1966 to 1976) and Late Boomers (born 1956 to 1965) may find retirement challenging as a group.  The article notes that Gen-Xer will likely be the first generation not to exceed the wealth of their previous generation.  Early Boomers (born 1946 to 1955) will likely be the last generation to exceed the wealth of their previous generation. According to the article,  Late Boomers are more like Gen-Xers when it comes to retirement readiness.

The main issues for Late Boomers and Gen-Xers are:  1) Less participation for both in the bull market from 1982 to 2000 and 2) greater losses in wealth for Gen-Xers during the Great Recession.  Thus, both of these generations have less wealth for retirement after the Great Recession than do Early Boomers at the same ages.  Early Boomers are on track to replace over 70% of their pre-retirement income.  Late Boomers are on track to only replace 60% of their pre-retirement income.  Gen-Xers are on track to replace only 50% of their pre-retirement income.

To improve their future retirement situation, the article notes both generations will need to increase financial net worth and significantly reduce debt.

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This is not financial or retirement advice. Please consult a professional advisor.

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