Boomers bite back: Don't blame us for retirement 'Road to Nowhere'!

You know where they say a road paved with good intentions leads, right?

Well, not too long ago, I posted a column warning future generations not to follow the baby boomers' lead when it comes to retirement planning. And that pretty much led me straight to a journalist's version of that fiery place.

Before I plead my case to the boomer community, here’s what happened.

Highlighting a study by the Transamerica Center for Retirement Studies that said the median amount baby boomers, or those born between the years 1946 and 1964, have saved for retirement is a totally inadequate $144,000, I wrote that the boomer generation was on the "Road to Nowhere," even going so far as to reference the lyrics and title of the well-known Talking Heads song.

At the time I wrote, “Sorry to be blunt, boomers, but it’s not just the soundtrack in our heads that’s telling us that you are traveling down a troubled path, it’s the data on our screens, too. Statistics from industry experts clearly show that your financial future is indeed certain — just not in a good way.”

Fine. Admittedly I was being, well, “blunt.” But I was writing as simply and directly as possible for what I believed was a noble reason. That is, to encourage Generation Xers, millennials and Gen Zers not to repeat the mistakes made by their elders.  

And then the boomers lowered the boom … on me!

Emails flooded in, accusing me of ignoring the repeated financial indignities suffered by boomers, a large number of those hardships that weren't of their own making.

Responded Thomas: “How are boomers supposed to retire? They're still raising their adult kids AND adult grandkids who refuse to get out of their house and get on with life! Tell the ‘you get’ generation to stop whining about every little thing, pull themselves up and get on with it already!”

Wrote Wendy: “Because it was active lobbying again and again by the investment firms for policies eliminating pensions. And then there was active lobbying against a government run retirement program for low and middle income people in my state because the financial firms didn’t want competition for fees. Because of that, a lot of elders are already homeless or living in poverty.”

And on and on and on it went. My well-intentioned missive to post-boomers turned me into a boomer pariah.

So why am I bringing it up again? Why open myself to additional criticism from 76 million Americans with keyboards at the ready and chips on their shoulders?

Well, partly to set the record straight and partly to double down.

In terms of record straightening, I did point out in my original column that numerous financial crashes (e.g., dotcom, housing) and geopolitical conflicts (e.g., Vietnam, Iraq, Afghanistan) have “affected their work history and their ability to save an adequate amount for retirement.” I also clearly stated that the baby boomers were “forced to deal with the societal transition from workplace pensions to defined-contribution plans, which left many ill-prepared for retirement.”

Finally, I wrote that the spike in health care costs, along with longer lifespans, certainly did not help “the boomers’ ability to sock away money to prepare for a rainy day, or year.”

So in my defense, I do have that on the record. But there were a few more things I could have said about the struggles Baby Boomers faced while saving for retirement in addition to those reasons offered by Thomas, Wendy and others.  

First off, baby boomers were once considered a wealthier generation because their incomes drastically increased compared to the prior generation. Most, however, were taught to live and save based on an income plan that focused on three parts: Social Security, pensions and personal savings.

Unfortunately, that three-legged retirement stool on which boomers were counting kept having its legs hacked, causing it to wobble severely.   

“As this generation worked over the years, drastic changes to that formula occurred as employer-provided pensions have all but vanished in the workplace after the 2008 financial crisis. Many workplace pension systems failed and companies shifted the liability of retirement income to their workers,” said Kevin Chancellor, CEO of Black Lab Financial Services.

Chancellor said we've also seen changes to policies over the years that have eased early access to retirement funds. Some boomers were forced to crack into those funds prematurely to survive a crisis, or two. 

“Many baby boomers needed retirement funds during times of crisis that even included the recent Great Resignation after the pandemic, when many of them left the workplace for an early retirement, even when retirement portfolios were down. Some are regretting that decision as they are trying to reenter the workforce and competing against younger highly skilled competition,” he added.

Put it all together and it’s easy to see why so many boomers are quick to take umbrage at those who insinuate that they are reaping the retirement crisis they themselves sowed. Even well-meaning insinuations like mine.

All that said, and I’ve certainly said a lot, a study recently released by Allianz Life does bolster my defense somewhat, as it illustrates the increasing financial fears among Gen Xers, or people born between 1964 and 1978.

The study shows that 43% of Gen Xers worry their employer will suspend their 401(k) match, compared to 38% of millennials (born between 1979 and 1996) and 24% of boomers. It also showed that 67% of Gen Xers say they are keeping more money out of the market than they should, compared to 66% of millennials and 54% of boomers.

Most notably, an overwhelming 85% of Gen Xers worry that they might “not be able to afford the lifestyle they want in retirement because of the increased cost of living, compared to 80% of millennials and 72% of boomers.”

Well, maybe it’s not a “Road to Nowhere,” but it seems painfully clear, and not just to me, that Gen Xers don’t want to follow the boomers down a rocky retirement path.

With that in mind, here's hoping members of every generation navigate their way to a comfortable retirement.