New analysis from Aon Hewitt found Gen Y workers are the ones most at risk of not having enough retirement savings.
The consulting and outsourcing firm reports eight in 10 Generation Y workers will not meet all of their financial needs in retirement because of their lack of participation in defined contribution plans, low savings rates and high rates of cashouts.
After factoring in inflation and postretirement medical costs, Aon Hewitt projects Generation Y workers will need to save 18.7 times their final pay in retirement resources–including Social Security, employer-provided defined benefit and defined contribution plans and employee savings–to maintain their current standard of living in retirement (this assumes retiring at age 65; more will be needed to retire earlier).
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