Generational Differences in Retirement Savings

In my Consumer Behavior class, we evaluate differences between how various groups behave, including differences between generations.  One of the findings about baby boomers is that, for all their good traits, as a group they are not very effective at handling their money.  I noticed a story this week that showed that, on average, older boomers had saved less for retirement than members of Generation X.

Of course, there is an alternative reason to this finding besides weaker money management skills.  Older boomers may simply be more confident that the government will pay for their retirement while younger generations have less faith that social security will be around when they need it.