Baby Boomers
The age group known as Baby Boomers consists of anyone born between the years 1942 and 1954. However, a second group of Boomers, often referred to as Generation Jones, was born between 1955 and 1964.
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According to a recent study, the later Boomers are set to face a challenging retirement as many have much less savings when compared to the generation that preceded them.
The Era of Beatlemania
While we’re accustomed to screaming fans falling in love with pop and rock stars today, the era of Beatlemania would have been unlike anything we could imagine.
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During the early to mid-’60s, a female-led fan culture followed the Beatles across the U.K. and beyond, creating a cult-like following for the singers.
Late Boomers Set for Tough Retirement
The iconic rise of the Beatles will forever be remembered as a memorable era. However, the late Boomers born during the Beatles era won’t be celebrating when they retire due to a lack of savings.
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According to the Center for Retirement Research at Boston College, the late Boomers will retire with far fewer savings and less wealth when compared to older Boomers or “war babies.”
Researchers Compare Wealth Between Generational Groups
Researchers at Boston College compared the wealth of late Boomers born during the Beatlemania era with older generations, and it produced startling results.
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According to their results, the late Boomers had around $280,000 saved in typical retirement plans, including their 401(k) in the wake of the Great Recession. Yet, earlier generations had, on average, $50,000 extra in savings.
Saving of Early and Middle Boomers
The results of the investigation surmise older generations, including early and mid-Boomers, had more savings when they were at the age of Beatlemania Boomers.
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Researchers state early Boomers had over $345,000 in total savings. In comparison, mid-Boomers had approximately $332,000.
Blame It on the Great Recession
Researchers have theorized the Beatlemania Boomers may have less in savings due to the financial impact the Great Recession had on their savings.
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Between 2007 and 2009, nations across the globe entered into an extremely harsh economic period. The S&P dropped by 50% in value, homes hit rock bottom prices, and unemployment rates skyrocketed.
Beatlemania Boomers Miss Out on Savings
Unfortunately for Beatlemania Boomers, this particular tough financial period hit when they would have been in their 40s.
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According to the experts, this occurred during their prime working years. So, they likely missed out on thousands, if not tens of thousands, in savings.
Expert Shares His Opinion on Beatlemania Boomers' Lack of Savings
Evan Potash, executive wealth management advisor at TIAA, claimed the Beatlemania Boomers missed out on a large chunk of savings.
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“People are really starting to peak in their careers around that time,” said Potash (via MSN). “They’re making, potentially, the most amount of money they’re going to make.”
Retirement Funds Take a Hit
The unfortunate reality for many Beatlemania Boomers was that their salaries, investments, and savings all suffered during the Great Recession.
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Senior economist at Boston College, Anqi Chen, argued that late Boomers “started out with a lot of 401(k) wealth.” She continued, “But then, it kind of stopped, and then it dropped.”
Survivor of the Great Recession
One Beatlemania Boomer, Jeri Lynn, spoke with MSN about her experience during the Great Recession in which she lost her job. She said, “And it just got to where I couldn’t pay my rent,” she said. “I was applying for jobs, and it was just ‘No, no, no, no.’”
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“There are so many people in our age group who I know who have no retirement savings,” said Lynn.
Late Boomers Try to Balance Savings and Inflation
Unfortunately for many Boomers who were born during the iconic era of the Beatles, they were among the worst to be hit by the Great Recession so far as savings are concerned.
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Now, it appears this age group will ultimately find themselves living a lower quality of life as they age in retirement. As they try to balance the rising inflation with lower savings, it’s not the final years any would have hoped for.