Using data from the Federal Reserve Survey of Consumer Finances, researchers from Morningstar’s Center for Retirement & Policy Studies developed an economic model that estimates the percentage of workers across Generations X, Y and Z who can retire at 100 percent of their pre-retirement income levels.
By the numbers: As you can see from the chart above, it’s projected that 53 percent of Gen Xer’s (born between 1968 and 1980) will have sufficient assets to retire comfortably, and the numbers increase for each succeeding generation.
These numbers improve dramatically for higher-income workers and when the retirement income floor is changed from 100 percent of pre-retirement income to 80 percent.
What They’re Saying: “Traditional corporate pensions may have largely vanished, but their twin replacements of 401(k) and IRA plans appear to have filled the retirement-planning gap nicely—that is, for those who have means,” says John Rekenthaler, vice president, research for Morningstar Research Services LLC.
