The financial challenges characterizing baby boomers, generation X and millennials are taking a stronger hold on each generation, according to the second annual generational study on employee financial issues by Financial Finesse. The independent group based in El Segundo, Calif., found that baby boomers represent the most immediate economic threat, Gen X will face the most significant financial challenges overall and millennials are not engaged in retirement planning.
With baby boomers, aged 55-64, 51% of employee respondents had not yet run a retirement plan estimate and only 22% have purchased long-term care coverage. Success in retirement is not only about how much you accumulate, but how you manage your assets that you do accumulate so that they last a lifetime, says Liz Davidson, CEO of Financial Finesse. Without proper planning, boomers put their retirement security in jeopardy. She adds that this group is of the biggest economic concern to their families and the federal government because theyre so close to retirement and the average cost of a nursing home is more than $50,000 a year.
