New research shows younger Baby Boomers are not as well prepared for their retirement. They’re lagging behind the older people in their age cohort.
Baby Boomers, those born between 1946 and 1964, were hard hit by the recession that struck in 2008, according to a new study by the Center for Retirement Research at Boston College. The report was authored by by Anqi Chen, Wenliang Hou and Alicia H. Munnell.
The research trio determined, among other issues:
- Data for the Late Boomers at ages 51-56 show a surprising drop in 401(k)/IRA assets compared to earlier cohorts at the same ages;
- Late Boomers were particularly hard hit by the GreatRecession, with a significant share remaining out of the labor force even as the economy recovered; and,
- Even those who were working had lower earnings, less 401(k)participation, and flat 401(k) balances.
The report’s introduction says a lack of employment caused by the recession does not explain the whole problem, so the research follows working households and finds that after the Great Recession they had lower earnings, less 401(k) participation, and flat 401(k) balances, ending up well below earlier cohorts.
Read more about Baby Boomer retirement finances.