09-04-2024
A Washington Post piece asserts 70 and 80-year-olds won’t leave the workplace, while Yahoo! Finance shared an article about how unprepared Gen X is for retirement. Both pieces show why many recent college graduates are struggling to find work.
Gen X, now referred to by some as "Silver Squatters," has a median retirement savings of $55,000, per a Prudential Financial survey. They are "sandwiched" between financially supporting their children and caring for their aging parents. According to Prudential's survey, about a quarter of Gen Xers are counting on their children to help support them in their older years. The Yahoo! article attributes this situation to a mixture of inflation, fewer traditional pension plans, and general financial illiteracy. With insufficient funds, this generation will likely join older generations in working longer.
Five generations currently compose the workplace, the first in known history—The Silent Generation (age 75+), Baby Boomers (60+), Gen X (45+), Millennials (30+), and Gen Z (16+). In 1990, approximately 10% of workers were over 55. Now, that number is about 23%. Experts believe this number will remain constant for the next decade. Older workers staying in their jobs longer earn higher incomes. Younger workers start low on the ladder and move upwards slowly because there is less room to move and improve their professional opportunities. The age gap in income has increased significantly since 2000 because of this issue. Without career advancement, Gen Z will struggle to buy homes and afford to raise children. They will also gain less experience managing others when they finally do move up.