The baby boomer generation, a generation that saw the most prosperous time in American history and a massive expansion of American influence around the world, is nearing retirement without a penny in retirement savings.
More than two-fifths of people who are 59 or older have no retirement savings as they are nearing retirement age. That’s the same share as the overall population, yet baby boomers have less time to save for retirement given that the generation is now between the ages of 59 to 77 years old.
This may not be a concern for those who work in a corporate culture of near-universal retirement coverage. But many Americans work for smaller companies that don’t offer retirement savings, or are self-employed, or live paycheck to paycheck.
“You think everyone works for a Fortune 500 company, and everybody has a pension plan, but that’s not the reality,” said Craig Martin, managing director of wealth and lending intelligence at J.D. Power.
The average monthly social security check for a retired person is around $1,800. The average household run by an American older than 65 spends more than $4,000 a month.
Fewer younger workers are banking on Social Security to supply them with income in retirement. Only about half of Millennials believe Social Security will factor heavily into their retirement plans, compared with 9 in 10 baby boomers – which indicates the older generation may be less financially prepared than younger Americans if benefits end up getting cut.
If the goal is to retire comfortably, workers should aim to save 10 times their annual salary by age 67.
