NEW YORK (AP) — Younger baby boomers and Generation Xers face an uncertain retirement because of reduced savings, high levels of debt, and losses during the Great Recession, a research report by the Pew Charitable Trusts says.
The study found that members of Generation X, who are now 38 to 47 years old, lost almost half their wealth from 2007 to 2010. Young baby boomers, who are 48 to 57, lost more money but a smaller portion of their overall wealth. The report says both of those groups are struggling to save enough money for retirement and are lagging older groups in terms of their savings. They also hold more debt than those groups did at similar points in their lives.
“Early boomers may be the last cohort on track to retire with enough savings and assets to maintain their financial security through their golden years,” the authors said.
The report is based on the Survey of Consumer Finances, which is conducted every three years by the Federal Reserve, and the Panel Study of Income Dynamics, which has followed a group of families since 1968. It takes into account financial assets like savings accounts and retirement accounts, nonfinancial assets like business properties, and home equity minus debt.
Members of Generation X were born from 1966 to 1975. The report divides the baby-boom generation into two groups: early boomers, who were born from 1946 to 1955 and are now 58 to 67, and late boomers, who were born from 1956 to 1965. According to the report, Gen Xers lost 45 percent of their wealth during the recession, as their median net worth dropped to about $42,000 in 2010, from $75,000 in 2007. Early baby boomers, lost 28 percent of their wealth, falling to about $173,000 from $241,000, and later boomers lost 25 percent of their wealth, to about $111,000 from $147,000.
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