Two prominent reports claiming Gen Xers will be in worse shape for retirement than baby boomers are based on flawed assumptions or methodologies, according to a report from the Employment Benefit Research Institute.
EBRI says that a study by Pew Charitable Trusts in 2013 is wrong because it "explicitly ignores future contributions to defined contribution plans."
Pew's study projected a decrease of 32 percent of median income replacement for Gen Xers at age 65 compared to "Early Baby Boomers," and a decrease of 9 percentage points compared to "Late Baby Boomers," according to EBRI.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
