Posted on 12/16/2023 6:35:50 PM PST by Libloather
By Javier Simon Sponsored by Credible - which is majority owned by Fox Corporation. Credible is solely responsible for the services it provides.
Although the Great Recession impacted the savings of American workers across generations, it delivered a major hit to the retirement savings of the youngest Baby Boomers, according to a study by the Center for Retirement Research (CRR) at Boston College.
Boomers born in the early 1960s at the end of that generational wave had saved an average of about $280,000 for retirement when they reached their 50s. That’s nearly $50,000 less than their older counterparts born in the late 1950s had saved by that age. And experts point to the Great Recession as the main culprit.
"The single biggest reason for the shortfall in savings was the 10 percent spike in unemployment during the Great Recession that followed the stock market crash," the CRR said.
In fact, late Boomers’ retirement savings seemed to be on track prior to the recession. By age 41, late boomers had saved an average of $15,329 in their 401(k) plans and individual retirement accounts (IRA) – "Substantially more than the middle boomers born in the late 1950s had saved by that age," according to the CRR.
But by age 51, late boomers had saved about $28,000 in retirement savings or half of what the mid-boomers had at 50, the CRR said. The Great Recession diminished late Boomers’ capacity to maximize savings. The stock market crash took an impact on their retirement accounts and massive unemployment reduced the amount many could save, with some stopping contributions altogether.
In fact, the late Boomers’ employment rate stood at 98% before the recession and then dropped to below 80% by the next decade, according to the CRR. And it didn't move for many years after.
(Excerpt) Read more at foxbusiness.com ...
Bkmk
One Trillion dollars. That is how much America now pays on the interest on the debt. The Socialists have run out of other people’s money. Unless a balanced budget amendment is passed hyper-inflation is inevitable.
I suggest stocking up. Especially get a freezer full of meat from a local farmer. Hyperinflation is inevitable. You’ll never convince these politicians, with their indexed pensions, to not destroy the United States.
When the local office is staffed by BLM, don’t expect to get your benefits unless God intervenes. I trust God for my finances and may God be merciful the person or institution that touches them. “Vengeance is mine, I will repay” as I recall from my bible. I try to stay far away from any fallout and refuse to stand in 120 degree heat for hours like I’m a whore for a handout. He calls me part of a royal priesthood. God forgive them, they know not what they do!
> Unless a balanced budget amendment is passed hyper-inflation is inevitable. <
Yep. Every last member of Congress wants a balanced budget. But their pet projects must be exempted! We simply must have another fleet carrier, or more money for gay rights in Pakistan, or whatever.
And we certainly cannot have an amendment that would hamstring all these very worthy causes.
So hyper-inflation, here we come. As you noted, it’s inevitable. And to make matters worse, it’s not Ike’s America any more. Nasty rioting will accompany the hyper-inflation.
some of the difference could be offset by a higher SS monthly benefits...
Stocking up only helps in the very short term.
I am not suggesting it not be done.
But it’s only good for a few months.
And replacement costs will be more, if its available at all.
I guess what I am saying is that we are facing a severe and long term disaster.
Can’t get blood from a turnip. Might be better off just going to you kids and neighbors and demanding your money. Boomers spent too much via big gov. 33T in debt.
In other words, we’re screwed.
Older boomers have paid off mortgages and have a different perspective on obtaining and paying off debt. My parents, from the depression era, constantly pushed us not to borrow and to repay our debts if we did.
As a member of the older boomers, I think that we tend to borrow less, but save less, because we have more experience in handling cashflow as well as an aversion to debt. While that, in turn, may reflect less savings reserve which is a factor highlighted in the article, is that bad if less savings means less debt?
Younger people are getting mortgages that are way higher as a percentage of their income than older people had. Also much publicized is the debt incurred by a college education. That debt coincidentally was brought upon them because of societal expectation that a college education was expected to be "successful in life".
For many young people today perpetual debt is a way of life they do not question but accept. Their solution appears to be trying to get the debt forgiven rather than show self restraint and limiting their debt or seeking a career path that is not front loaded with debt.
You’re right that stocking is only short-term. It’s basically to bridge the gap between the collapse and the recovery. The economy will only recover once its losses have worked themselves through. We have almost 40 years of deficits to pay before we can recover.
in before the “I scrubbed jailhouse bathrooms for a living and saved every penny crowd....
A balanced budget amendment will guarantee ever-increasing taxes year upon year. The excuse for increased taxes will be it is constitutionally mandated by the balanced budget amendment. It is ONLY spending reductions and future limits that stop the hemorrhaging. The new amendment that MUST transpire to set things in stone is one that simply states “if a government action is not explicitly specified in the Constitution, it is forbidden to the federal government.”
if they do indeed screw us, then seriously will have to consider becoming one of the great unwashed takers...
anyone considering cashing out iras and into to gold (coin)?
So, from what I gather from this, Boomers have 401ks that grow a measly $1500 per year, over a 10-year period.
Guess that’s what happens when you contribute $100 a month?
Maybe they aren’t even contributing, some companies automatically contribute 1% to the employee’s 401k.
> Unless a balanced budget amendment is passed hyper-inflation is inevitable.
According to the internet, most experts agree that hyperinflation is unlikely...
https://www.investopedia.com/are-we-in-for-a-hyperinflation-5093627
They will just (like FDR ) make it illegal to own gold above a certain weight.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.