The only challenge with this advice is that it works primarily for older people - but not for the younger generations living paycheck to paycheck. Some 60%+ of US households now report living paycheck to paycheck. Most of these are middle class households now. For those of us who've had 25-40 years of career experience and are making six figure incomes now - saving isn't a big deal - though admittedly it's becoming more difficult with recent price inflation issues. For my children for example, ages 28 and 26 - both of whom are making around 70k per year - they are having a lot of difficulty saving anything. With student loans (my kids all took stafford loans to pay a part of their college education expense), rent, car payments, etc., it's tough. They are both saving into 401ks - taking advantage of their "free money" matches, but not much beyond that at present unfortunately. Pay raises are more than offset by inflation over the past two years - with inflation having been in the 6-9% range and raises only coming in between 3-5% for example. I think, at least to some degree, the older BB generations really don't understand how hard it is for the younger generations to make things work these days. It's apples and oranges in many respects. The same rules don't apply - nor do they work nearly as well for the younger generations. Rents/mortgages - given the increases in real estate prices over the past 20 years - also mean that a much larger portion of household incomes are going to provide basic shelter than in times past. Something has to give here IMHO - what we're seeing - particularly for the younger generations - is unsustainable long term. There's a reason those generations don't buy into the same mantras and concepts that the older generations cling to - it's because they aren't working for those younger generations any longer.
We just made our retirement budget and have earmarked $ to help out kids. We'll likely have to supplement 2 younger college grad kids (22/23) for rents in DC area. My older DD (26) and significant other make well over $100K and are essentially a bit over paycheck to paycheck. Rent/utilities for (basic) small apt is almost $2500 in suburban DC. Gas prices eat into budget more than when we were young. And, they are the "lucky" ones with no student loans or car payments. She realizes that they will likely never save enough for a house. They are considering relocating jobs to move in with us in NC for up to 2 years to save for a house. But, what about those with student loans? Or living in an even more expensive area? Or without family help? I can see why the 20/30s don't have the same optimism that we had.
People have always had troubles retiring. It has nothing to do with this or that generation. People have retired, people have just retired and people will continue to retire and every story is different and things will continue to change.
Of course it has everything to do with this or that generation.
Some parts of this are true. But also consider that young people have opportunities that didn't exist for their grandparents. Granted, it's a small percentage of the population, but older generations couldn't strike it rich by videoing themselves doing silly dances or reviewing stuff or just straight up pontificating about nothing and putting in on the internet. Or via web-order business or conducting video-based lessons that the internet has facilitated. There's a lot of young folks making six figures this way, and an elite few making millions. In the old days, if you were born in the wrong place with nothing you were often stuck that way no matter how hard you tried. Now, someone in a bad situation just has to have the right personality and ideas that catch interest and they can skyrocket in ways that weren't possible before. The knife cuts both ways.
Why don't you go back a few generations also? There are always changes and hard times. People will continue to retire and others won't.
And the ONLY thing I am saying is that you can't just look at 1962. What about 1942, 1932 and 1902. You brought up the generation aspect so look at them all.
No need to worry.
I don't know many people who say "I've got mine, Jack". Either way, worrying about it won't help.
Mistakes often repeat themselves.
