The boning, Pt. 2

The Washington Post (via John Cole):

The 401(k) generation is beginning to retire, and it isn’t a pretty sight.

The retirement savings plans that many baby boomers thought would see them through old age are falling short in many cases.

The median household headed by a person aged 60 to 62 with a 401(k) account has less than one-quarter of what is needed in that account to maintain its standard of living in retirement, according to data compiled by the Federal Reserve and analyzed by the Center for Retirement Research at Boston College for The Wall Street Journal. Even counting Social Security and any pensions or other savings, most 401(k) participants appear to have insufficient savings. Data from other sources also show big gaps between savings and what people need, and the financial crisis has made things worse.

Keep this in mind when you listen to rich Washington politicians and Big Media pundits go on about how imperative it is to cut the safety net for current and future retirees. They don’t have to worry about their retirement, but thanks to the all but gone pension system, you do.

2 Comments

  1. Ian

    Well I know my parents and in-laws both have insufficient savings to be able to retire. Either their kids are going to take care of them, and/or they are never going to be able to stop working. What can you really do though? This is a generational problem. To pay for it via something like Social Security would probably wreck us financially.

  2. Chris

    That might be true, but we need to:

    a) not cut the meager assistance we already provide
    b) take positive steps to help future retirees