They're doing everything right for retirement. Their parents didn't.
The article discusses the financial burden placed on younger generations as they support aging parents who have not saved enough for retirement. It highlights the gap between the $1.6 million recommended for retirement and the actual savings of many Baby Boomers.
Why it matters
This highlights a growing economic crisis regarding intergenerational wealth transfer and the sustainability of retirement planning in the U.S.
Getty Images; Alyssa Powell/BI For better or worse, America treats retirement like a personal problem. Yes, there's Social Security , but it's only designed to make up about 40% of your retirement income. As for the rest, the answer is to work hard, save up, and pray your calculations are right. Even if you manage to get it all right, what happens when your parents don't do the same? Baby boomers are in their post-work era — an estimated 10,000 of them retire every day. As a whole, they're a very wealthy generation , but they're not all cruising toward their golden years financially sound. According to a Vanguard estimate, just 40% of boomers between 61 and 65 are on track to afford their lifestyles in retirement. Americans believe they need $1.6 million to comfortably retire, according to a survey from Charles Schwab.
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