Generation X has been notoriously reluctant to embrace appropriate retirement investments. A new Pew study offers a clue as to why: they may be too afraid to even look at them. The study showed that Xers are more afraid than any other generation that their retirement will be accompanied by poverty and destitution. Nearly half (49%) of Xers are not confident they will ever have enough to retire. The fear peaks in those around 38 years old. 53% of them lack confidence about retirement. Among other generations, those figures are in the high 30s/low 40s. This fear corresponds to a… Read More
Categories: Generations, WorkTypically, tax season brings a flurry of interest in IRAs as a tax sheltered way of socking away a few extra bucks for retirement. This year, though, well fewer than half of Millennial and Gen X investors will contribute to IRAs compared with over 70% last year. The sharp drop in interest in IRAs is attributable to economic insecurity. 32% said they were feeling too poor to contribute and 56% said they needed the money for everyday expenses or to pay down debt. 14% cited fears of market volatility and 12% blamed job uncertainty. “Given their economic fears, it is… Read More
Categories: Recession Economy, WorkMany of the oldest, or “Leading Edge” Baby Boomers are staying on the job longer because they like to work or they haven’t saved enough for retirement. But a good number of them simply wish they had that option. Older Boomers who have lost their jobs due to the recession are having a tough time getting back into the workforce, reports the Wall Street Journal. The unemployment rate among those ages 55-64 is about 6.5%. That’s below the national average but twice the rate for Boomers of just five years ago. More significant is the “underemployment” rate that also counts… Read More
Categories: Baby Boomers, Generations, WorkDespite the cautionary example of Baby Boomers who are barely scraping enough together to retire, Gen Xers and Millennials are falling behind in retirement savings, according to a report from Hewitt Associates. The report shows that younger generations are not setting aside enough for retirement even though, in surveys, they say they do not believe they can count on social security or pensions to sustain them in their golden years. The report shows that at least one third of eligible Gen X and Millennial employees elect not to participate in employer-sponsored retirement plans. Among younger Millennials, the non-participation rate is… Read More
Categories: WorkThe retirement, or pending retirement, of thousands of Baby Boomers a day (10,000 turn 65 each day for the next couple of decades) is leaving employers with some difficult holes to fill. While there might be plenty of applicants for new job openings, the experience and job skills that Boomers are taking with them into the sunset will be difficult to replace. According to the AARP, 72% of HR professionals surveyed report that they will have a problem replacing the skill, knowledge, and experience of Boomers retiring from their organizations. As a result, many are doing more cross-training of younger… Read More
Categories: Baby Boomers, Generations, Work, WorkplaceThe savings rate among Baby Boomers has dropped dramatically since the Recession began. Instead, Boomers are using their would-be retirement savings to help out family members from generations who are having an even tougher time. According to an Ameriprise survey, the share of Boomers saving for their own retirements has dropped from 44% to 24% since 2007. At the same time more than half of Boomers (58%) are providing financial assistance to aging parents. Almost all (93%) of them who have children are providing them with assistance including tuition and student loans (71%) and car buying (53%). Despite the fact… Read More
Categories: Baby Boomers, Recession Economy, WorkMillennials are gradually awakening to the need to plan for retirement and the financial industry is gradually awakening to the importance of reaching out to Millennials. The generation and the industry may have found a meeting place in age-based and Roth funds, according to an analysis by Fidelity. According to the study, about two thirds of Millennials are choosing funds organized around age-based asset allocation. Among all participants, only about 45% choose that option. About half chose target-date funds compared with 30% among investors at large. Millennials also choose Roth savings options 50% more than other Generations. About 9% of… Read More
Categories: Blog, Financial Services, WorkMore Americans than ever are working past the age of 65, according to Labor Department statistics cited by The New York Times. As longevity and health care improves, and as the economy remains tight, more Matures, along with the leading edge of the Baby Boomers, are deciding to stay on the job. Employment among every age group above 65, including those above 75, has risen steadily. The ranks of the 65+ in the workforce swelled noticeably in the last year as the first Boomers reached the traditional retirement-age milestone. “The fact of the matter is that this aging-but-not-yet-aged segment of… Read More
Categories: Baby Boomers, Matures, Work, WorkplaceBoomers are losing their expected inheritance to their parents’ longevity, according to an analysis in the Wall Street Journal. Matures who have reached their late 60s have as much as a 50-50 chance of living well into their 80s and many into their 90s. Thanks to medical and longevity gains, 85-and-over is the fastest growing age group in the nation. But thanks to that longevity, the Boomers expected inheritance is shrinking as long-lived retirees use their resources to support themselves. It’s long been estimated that over $40 trillion in inheritance would change hands in the first half of this century…. Read More
Categories: Baby Boomers, Matures, WorkAs the Baby Boomers near their golden years, Hollywood is right there with them. A spate of movies aimed at older demographics and featuring stars in their 50s and 60s reflects the fact that Boomers are proving to be the most reliable movie-going generation. In many ways, Boomers are the “movie generation” having grown up in an era when cinema was the premier form of entertainment. Now, nearing or in retirement, Boomers have more time and money than younger generations and still have a fondness for movies. According to the MPAA, moving going has declined among every demographic except older… Read More
Categories: Baby Boomers, Blog, Work