Will Retirement Shortfalls Still Plague Us in 2100?
Who needs a futuristic sci-fi film when you have real-life predictions about how the latest generation of Americans will distinguish themselves over the next 75 years.
A new research study from Prudential Financial explores how this year’s brand new babies — the first to join what’s being called Generation Beta — might redefine family, work, and money, and there are some pretty interesting ideas.
To start, the nuclear family will no longer be the norm, it will be common to have more pets than children, and space — yes, outer space — will be a popular vacation destination.
Plus, Betas will be working in jobs not yet invented and have more than three distinct career paths in their lifetimes.
(They can be an entrepreneur, spaceship pilot, and a petsitter.) The government may not even print cash anymore because Betas won’t use it.
Prudential’s research included a literature review, expert interviews, focus groups and a survey panel of about 2,000 Americans, including would-be parents and grandparents of the Beta generation, which will encompass everyone born through 2039.
One thing that isn’t expected to change is the risk of being unprepared for retirement. More than half of the survey respondents think Betas will struggle to save enough for a secure retirement. (As wild as it sounds, these babies will reach today’s notion of “retirement age” in the 2090s or 2100.) And enough will be nearly $1.9 million, though many of the older survey respondents predict they’ll need to have saved even more — over $5 million.
Sounds a bit fantastical, but given that we’ve had over 1200% inflation in the past 75 years, those figures are actually quite conservative. (At that inflation rate, $5 million in 2100 dollars is just $382,000 today.)
So what? Worry about retirement shortfalls may never go away. A separate survey released last year by Natixis Investment Managers showed almost half of Gen X investors are relying on a miracle to retire securely, and in many cases are so worried that they avoid thinking about retirement at all. Ouch.
If you’re concerned about retirement — whether it’s yours, your children’s, or grandchildren’s — don’t forget that the sooner you get money in an IRA or 401(k) account, the better chance you have to leverage the power of compound growth. Even a small contribution can make a big difference. Your future self (or future Beta babies) will thank you.
Related Reading
• Older Parents, Climate Change and AI: Say Hello to Generation Beta (CBC News)
• Meet Gen Beta, Starting to be Born in 2025 (Axios)
• 12 Common Retirement Mistakes You Should Avoid (SoFi)
photo credit: iStock/SethCortright
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