Are Retiring Boomers “The 401(k) generation”?
Posted: February 24th, 2011 | Author: Joe | Filed under: Retirement | Tags: 401(k), Investing, Opinion, Retirement | No Comments »I came across this article today and what really caught my eye (besides the stark numbers) was that Baby Boomers who are now just reaching retirement age are referred to as “The 401(k) generation.”
It’s true that the 401(K) came into prominence during their working lives, but I would hardly consider them “The retirement savings plans that many baby boomers thought would see them through old age.”
The article seems contradictory too. On the one hand, we are told that these Boomers have relied on them for retirement, and then we’re told that one reason the 401(k) has fallen short for these Boomers is that they never really contributed enough with any consistency. Which is it?
Also, the 401(k) came into heavy use in the 1980′s. These Boomers were well into their 30′s by then. Did they wait until then to start saving?
I realize I’m being a bit over the top, but only because the article doesn’t really portray the situation correctly. For example, it doesn’t really go into how this generation was caught at the crossroads between pensions and individual retirement accounts. That’s a circumstance of the times, and doesn’t really mean that the 401(k) plan has failed as a vehicle for retirement savings.
One thing is certain, retiring boomers have tough road ahead.
Personally, I consider my own generation and the current (X and Y) to be the generation of the 401(k) because we know that social security will not be viable for us and we are responsible for our own retirement. I encourage you to read the article because it may just scare you into action on your own retirement planning!
