How Will Retirement Saving Change By 2050? Prospects for the Millennial Generation

51 Pages Posted: 1 Jun 2019

See all articles by William G. Gale

William G. Gale

Brookings Institution

Hilary Gelfond

Brookings Institution

Jason J. Fichtner

Johns Hopkins University - SAIS

Date Written: December 2018

Abstract

We consider prospects for retirement saving for members of the millennial generation, who will be between ages 54 and 69 in 2050. Adequacy of retirement saving preparation among current and near-retirees is marked by significant heterogeneity, a characteristic that will likely hold for Millennials as well. In preparing for retirement, Millennials will have several advantages relative to previous generations, such as more education, longer working lives, and more flexible work arrangements, but also several disadvantages, including having to take more responsibility for their own retirement plans and marrying and bearing children at later ages. The millennial generation contains a significantly higher percentage of minorities than previous generations. We find that minority households have tended to accumulate less wealth than whites in the past, even after controlling for income, education, and marital status, and the difference appears to be growing over time for black households relative to whites. Whether these trends persist is central to understanding how the Millennials will fare in retirement.

Suggested Citation

Gale, William G. and Gelfond, Hilary and Fichtner, Jason J., How Will Retirement Saving Change By 2050? Prospects for the Millennial Generation (December 2018). Available at SSRN: https://ssrn.com/abstract=3385522 or http://dx.doi.org/10.2139/ssrn.3385522

William G. Gale (Contact Author)

Brookings Institution ( email )

1775 Massachusetts Avenue, NW
Washington, DC 20036
United States
202-797-6148 (Phone)
202-797-6181 (Fax)

Hilary Gelfond

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

Jason J. Fichtner

Johns Hopkins University - SAIS ( email )

1717 Massachusetts Avenue NW
Washington DC, DC 20036
United States

HOME PAGE: http://https://sites.google.com/site/jasonjfichtner/

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