The U.S. Retirement System Will Fail Most Future Retirees

Careful research done by PhD economists conclude we face a huge retirement shortfall. We are about eight to nine years away from Social Security’s inability to pay full benefits; all boomers are past age 60, and the typical Gen Y and Millennial is predicted to do a little worse or much worse than the cohorts of their big brothers, sisters, and parents. The erosion in retirement security is worse for the bottom 60% or so of the earnings distribution. Yes it’s a crisis.

Early boomers at the top of the income distribution have benefited from run-ups in the stock market, owning houses, and having employers who helped them save in retirement accounts and funded defined benefit plans. The top 20% of earners get 44% of all the employer contributions according to Vanguard who examined 401(k) – type employer plans. The nation’s private, commercial, voluntary employer – retirement plans exacerbate pay inequity and retirement income inequality.