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Why Gen X And Late Boomers Aren't on Track for Retirement

The current path that Gen X and late baby boomers are on puts them in a place of earning a mere 50 percent of what they earn now once they're retired. What factors are driving this disturbing phenomenon?

To put it in perspective, war babies have been able to replace 99 percent of their income, according to Forbes, while early boomers are replacing 82 percent of theirs. This is well above the recommended 70 percent that a financial planner would be likely to aim for.

Economists have some theories on why this trend is happening. Some say that the transition from pensions to 401(k)s is to blame. This is especially true as unions have fallen to lower numbers and older workers faced higher unemployment.

Another point of contention is the fact that there seems to be a lack of financial literacy. While it can be argued that this has always been true, some economists believe it has never been as apparent as it is now. With high school loans and more people going into debt over materialistic items, our grasp of money seems to be falling out of our hands.

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