Expect Little Sympathy

Reassurance from Barron's that the "crisis" of inadequate retirement savings is overblown, at least for the demographic who read Barron's [bold added]:

When researchers adjust for factors like income, children, homeownership, and savings and spending patterns, a different picture emerges -- one not nearly as dire as the prevailing narrative. "I've done thousands of simulations," says Jack VanDerhei, EBRI's research director, "and by and large [baby boomers and Gen Xers] who worked for an employer with a 401(k) or retirement plan are going to be OK." VanDerhei defines baby boomers as those born between 1948 and 1964, and Gen Xers from 1965 through 1974.

The financial industry, naturally, has largely focused on ringing the alarm bells for the mass affluent, defined as individuals with $100,000 to $1 million in investible assets. But most are not headed for disaster. About 86% of Americans in the top quartile of pre-retirement income will have enough money to cover average daily expenses in retirement, including housing, food and transportation, as well as long-term care, according to EBRI. (Census data put the top quartile at households with at least $92,500 in household income. EBRI averages income over a working life.)

If you're in the "top quartile," dear reader, personal spending will decline during your 70's and 80's. In the 90's it will pick up again due to medical and long-term care expenses (graph below). There is a possibility that you could run out of money after the century mark, but if that's your main financial worry expect little sympathy.