Gen-Xers, Millennials Will Have Higher Retirement Incomes Than Previous Generations
Retirement income, for age 70, will be higher for Gen-Xers and Millennials than previous generations, a new report finds. But, a larger share of retired Gen-Xers and Millennials will be unable to replace at least three-quarters of their pre-retirement earnings, and will see their living standards decline when they retire, according to the Center for Retirement Research at Boston College study.
The study says the move from defined benefit pensions to defined contribution accounts, the increase in Social Security’s full retirement age, continued declines in men’s employment before age 55, stagnating median earnings for men, the Great Recession and the collapse of the housing market in the previous decade are some of issues that put the financial security of future retirees into question. Researchers do note, the projections assumed that Social Security will pay future retirees the benefits they currently should receive under current rules.