There are many later baby boomers who have very little to absolutely no savings or pensions on which to rely in their elder years. Older boomers are better off because they got into the better employment positions first and stayed there. Older boomers were more protected from the layoffs and downsizing that occurred in the recession (depression?) of 1991 and its aftermath. Later boomers topped out in their careers much sooner because there was no room for advancement.
Comparing 1997 with 1973, United States Census Bureau figures on Household Median Incomes by age groups demonstrate progressively lower real incomes for each age group under the age of 45:
The huge difference between the over 65 age group and the 55-64 age group is probably due to a huge increase in programs for the elderly since 1973. But after this change, the next largest gap is between older boomers (45-54) who are up 8.34%, and younger boomers (35-44) who are down 2.36%.
Time is running out for the later baby boomers. They make good incomes (in the sense that they could never qualify for welfare), but all of their saving and investment potential is sapped away by payroll taxes. Yet they are facing a situation where they will never be able to retire because they could never maintain their standard of living even if they could count on receiving full Social Security benefits.
Time is running out. Whatever fund is to be built for later boomers to retire on must be built now. Otherwise, the later boomers will see no choice but to demand that future generations suffer higher and more destructive taxes just to keep them out of poverty.
Today, very few people have a clear understanding of the issues that we are discussing. But soon, desperation will take over.
