‘Many Baby Boomers and Gen Xers face a significant retirement income shortfall,’ writes Alicia Munnell , director of the Center for Retirement Research at Boston College
According to Munnell, the current crop of retirees are living in a “golden age” that will fade as Baby Boomers and Generation Xers reach traditional retirement ages in the coming decades.
“Many Baby Boomers and Gen Xers face a significant retirement income shortfall,” she writes. “Even before the financial crisis, almost 45% of working households were projected to be ‘at risk’ [of being unable to maintain their pre-retirement standard of living in retirement]; after the crisis, this level increased to 51%.
Moreover, Munnel adds, the percent “at risk” increases with each cohort. Late Boomers show more households “at risk” than early Boomers, and Generation Xers have even larger numbers “at risk.” This gloomy forecast is due to the changing retirement income landscape.