'Playing Catch-Up in the Game of Life.' Millennials Approach Middle Age in Crisis
American millennials are approaching middle age in worse financial shape than every living generation ahead of them, lagging behind baby boomers and Generation X despite a decade of economic growth and falling unemployment. Hobbled by the financial crisis and recession that struck as they began their working life, Americans born between 1981 and 1996 have failed to match every other generation of young adults born since the Great Depression. They have less wealth, less property, lower marriage rates and fewer children, according to new data that compare generations at similar ages.
Even with record levels of education, the troubles of millennials have delayed traditional adult milestones in ways expected to alter the nation’s demographic and economic contours through the end of the century.Millennials helped drive the number of U.S. births to their lowest levels in 32 years. That means fewer workers in the future to support Social Security and other public programs for the ballooning population of retirees.
Social Security last month estimated that in 2035, after nearly all baby boomers retire, there will be 2.2 workers per beneficiary. Last year, there were 2.8. The current birthrate of around 1.8 children per woman is expected to create a Social Security deficit of nearly $2 trillion over the next 75 years. Prospects for a quick turnaround aren’t good. Men and women in their 30s are marrying at rates below every other generation on record.
(snip)
One explanation for their slow progress is bad luck. Economists have found that entering the workforce during a downturn yields lower earnings for life...The disappearance of manufacturing jobs, which in postwar years paid middle-class wages to high-school graduates, is another misfortune. Those who lack a college degree are at the biggest risk of falling behind... Many millennials couldn’t afford to buy houses or invest in the stock market early enough to profit from the sharp escalation of prices over the past decade.. Losing out on a decade of gains in the stock and housing markets hurt the financial standing of millennial households. Between 2010 and 2016, Gen Xers, baby boomers and the older silent generation all recouped some of their recession losses, while the average family headed by someone born in the 1980s fell further behind the older groups, in relative terms.
(snip)
One other bright spot: Millennials are entering their prime earning years just as baby boomers retire. That should fuel demand for their skills and lift their earnings. “The job market is so much better, so much stronger than it was 10 years ago,” said Mr. Emmons, of the St. Louis Fed. “That’s a huge benefit.”
https://www.wsj.com/articles/playing-catch-up-in-the-game-of-life-millennials-approach-middle-age-in-crisis-11558290908 (paid subscription)
= new reply since forum marked as read
