Retirement Readiness: Millennials and Gen Xers Outshine Baby Boomers, Surprising Report Finds

Contrary to popular belief, millennials and Gen Xers may be better prepared for retirement than baby boomers, according to a report by investment advisor Vanguard. This is attributed to new regulations that have made it easier for younger generations to save for retirement, such as the introduction of 401(k) retirement accounts with automatic contributions and target date funds. However, the advantage diminishes for lower-income households who lack access to employer retirement plans. The report suggests options to bridge the retirement savings gap, including working longer and tapping into home equity, although the latter is seen as a temporary solution. The study did not factor in homeownership as a significant source of net worth.