Shauna Sharpes prefers to stay close to home in western Washington state and takes pride in growing a significant portion of her own food. The payroll manager for a local Native American tribal authority has limited savings and anticipates the need to continue working for at least the next ten years.

Part of her challenge: She celebrated her 60th birthday in January, placing her at the tail end of a baby boom generation that is approaching retirement age with a sense of uncertainty. Coming of age in a hopeful midcentury America, a significant number of the youngest boomers are still feeling the financial impact of the 2007-09 recession and the country’s gradual move away from secure pensions.

“The most crucial priorities for me at the moment are secure housing, access to clean water, and an adequate food supply,” stated Sharpes, who currently has approximately $3,000 saved in her retirement accounts. And considering how I will ensure my financial security for the rest of my life.

By the end of this year, the youngest baby boomers will reach the age of 60. The birth dates of individuals in this generation, which consists of approximately 70 million people or one-fifth of the American population, span a period of 19 years from the post-World War II era to 1964, coinciding with the year the Beatles first appeared on the Ed Sullivan Show.

Older Americans, including young boomers with retirement accounts benefiting from a thriving stock market, continue to play a significant role in the economy. According to data from the Federal Reserve, individuals aged 55 and above possess a significant majority, approximately 70%, of the total household wealth in the United States.

However, this age group also consists of older adults who have minimal or no retirement savings, and rely solely on Social Security for support. They are now confronting their golden years filled with uncertainty and vulnerability. For millions of younger boomers, who may have many more years ahead of them, the sudden loss of a job or a costly medical issue could disrupt their stability and place additional burden on younger generations.

The long span of the baby-boom generation results in the youngest boomers experiencing major life events at different times compared to their elders. According to retirement experts, the 2007-09 financial shock disrupted their midcareer years, a time when earnings usually reach their highest point. Younger boomers without traditional pensions had to assume a greater burden of investment risk when saving for retirement. Additionally, a larger portion of young boomers who are nonwhite are more prone to not having retirement accounts.

In 2022, the most recent year available, a significant portion of younger boomer households did not have retirement benefits beyond Social Security, as reported by the Survey of Consumer Finances, a widely followed tool by the Federal Reserve. Back when the older boomers were around the same age, a smaller percentage—only a quarter—did not have access to these retirement benefits.

Many others have limited savings or are concerned that rising healthcare expenses will deplete their funds rapidly.

According to David John, an expert in retirement savings issues at the AARP Public Policy Institute, a growing number of young boomers will face retirement without sufficient resources.

For a significant number of individuals, ensuring financial stability may require continuing to work even during their later years, provided they are physically capable. However, they might also need to depend on younger family members for caregiving and financial assistance. An increase in the number of seniors living in poverty may lead to a higher dependence on Medicaid, the health program designed for individuals with low income. Medicaid covers expenses for long-term care, such as nursing homes.

Sharpes, a resident of Oakville, Wash., and a mother of four adult daughters, experienced a significant loss of approximately 50% in her 401(k) retirement savings during the financial crisis of 2007-09. She decided to allocate the remaining funds towards her home mortgage, even though there was a significant penalty for withdrawing the money early.

Years after the financial crisis, she mentioned losing her job as controller of a small lumber yard when the company closed. Her marriage came to an end as well.

Last year, she purchased a dilapidated two-bedroom house on almost 2 acres of land that she is renovating with her partner. She aims to reduce her workload by the time she turns 70. In order to achieve her goal, she mentioned that she will have to reduce her home-related debt by $260,000 and simultaneously start saving for retirement. Her goal: $100,000.

“It’s not going to be a significant amount, I’m already aware of this,” she stated.

A recent study examined the financial assets of approximately 30 million young boomers who will reach the age of 65 between this year and 2030. The study found that slightly more than half of them have a maximum of $250,000 in financial assets. According to a study commissioned by the Washington, D.C.-based nonprofit Alliance for Lifetime Income, it is probable that these individuals will need to depend on Social Security as their main source of income in retirement after depleting their savings. The Alliance for Lifetime Income, which consists of insurers and financial-services companies, promotes retirement annuities.

“Social Security was never meant to be the only income option in one’s later years,” stated Ramsey Alwin, the CEO of the National Council on Aging, an organization that promotes financial security for older individuals.

Researchers at Boston College’s Center for Retirement Research have analyzed the financial vulnerabilities of young boomers and identified several contributing factors.

It is worth noting that the younger boomer generation has become more diverse, primarily due to the significant growth in the Hispanic population. Recent census estimates reveal a disparity in the representation of Hispanic individuals between the youngest and oldest boomers. Specifically, the data shows that Hispanic people make up approximately 15% of the youngest boomers, while comprising only 8% of the oldest boomers.

Studies have indicated that there is a significant disparity in retirement plan accessibility between Hispanic and Black individuals compared to the non-Hispanic white population. Financial experts argue that low pay also acts as a deterrent to saving. Hispanic immigrants often send their savings to family members in their home country.

Researchers from Boston College have discovered a concerning trend of increasing disparity between work and wealth accumulation. According to John from the AARP’s Public Policy Institute, younger boomers faced the challenge of transitioning away from pensions, which provided guaranteed retirement income. This happened at a time when 401(k) plans required individuals to take responsibility for making smart investment decisions.

There is some disagreement among experts and data sources regarding the distinction between the different boomer cohorts. Additionally, the strong performance of the markets has been beneficial for younger baby boomers who possess investment accounts, according to Lowell Ricketts, a data scientist at the St. Louis Fed.

According to the Fed survey, the younger boomers in 2022 had accumulated more assets in their 401(k) and IRA plans compared to older boomers at the same age. For young boomers, the median stood at $189,000, whereas for older boomers, approximately nine years prior and after adjusting for inflation, it was slightly below $143,000. The survey fails to consider the importance of pensions and Social Security.

According to Ricketts, the future looks less promising for the numerous young boomers who do not have such accounts. He mentioned that this could result in a lower standard of living in their later years.

Barbara Tarallo, 62, was let go from her position at a software company during the 2007-09 recession. She managed to secure alternative employment and is currently working in the marketing department of another software company. However, her current salary is approximately half of what she used to earn. She continues to earn approximately $45,000 per year, even as she works from her home in Pelham, N.H.

She mentioned that she has been unable to save for her retirement since then because of a significant life event: her husband, Tom Tarallo, experienced a traumatic brain injury about a year after she transitioned to the lower-paying job.

The couple had to adjust their living arrangements to accommodate the husband’s wheelchair after he lost his higher salary. Barbara Tarallo manages to cover her mortgage and other household expenses with her salary and modest disability benefits, all while taking care of Tom. She has also tapped into their retirement savings, which amount to approximately $250,000 to $300,000, in order to assist with expenses.

Today, residing in a 55-and-up community brimming with seasoned retirees, she struggles to imagine her own departure from the workforce.

“I have accepted the reality that I can continue doing this task for as long as I am capable, and when I reach a point where I am no longer able to do it, I will address that situation at that time,” Tarallo stated.

That may happen sooner than anticipated by the older generation. According to a recent study conducted by the nonpartisan Employee Benefit Research Institute, it has been found that individuals tend to have an excessively optimistic outlook regarding the duration of their employment. According to Craig Copeland, the director of wealth benefits research at EBRI, personal medical problems, partners’ health needs, and layoffs are all potential hazards that individuals may face.

According to John Sabelhaus, a visiting fellow at the Urban-Brookings Tax Policy Center, Social Security can serve as a crucial financial safety net for older Americans, protecting them from potential destitution. Benefits are calculated in a way that takes into account the income earned throughout one’s career. This ensures that individuals with lower career earnings receive a higher proportion of their preretirement earnings in benefits.

Retirees this year who reach full retirement age and have average annual earnings of around $28,550 will receive yearly benefits equivalent to 57%. On the other hand, individuals who earned slightly over $100,000 will see their benefits reduced to 35%, as reported by the Social Security Administration.

Keith Seawell, 60, does not have any retirement savings accounts and currently rents an apartment near Baltimore where he resides with his girlfriend and teenage daughter. He has been earning approximately $2,500 per month from a temporary administrative job and Social Security disability payments due to a back injury he sustained while working in construction and other manual labor positions. Disability payments eventually transition into regular Social Security benefits.

Similar to many other young boomers, Seawell expresses his determination to continue working, as he wants to ensure that his four children will never have to bear the financial burden of supporting him.

“I have always considered myself as the one responsible for providing, without considering the future where they might have to take care of me,” he expressed.

Seawell has been dealing with worsening back problems that have unfortunately forced them to take a break and undergo surgery. He expressed his desire to return to work once he has fully recovered.