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When it comes to the future of Americans and their retirement savings, the glass is either half empty or half full, depending upon whom you ask. A recent article from The Providence Journal suggests a less optimistic viewpoint, citing that more than half of all U.S. households have not saved adequately for retirement, and the problem is growing worse.
A study from Cogent Reports offers a more hopeful vision for the future, noting that nearly one-third of 401(k) participants increased their contribution deferrals last year, a higher rate than ever seen before. An additional 26 percent of participants said they intend to do the same in the next year. Younger generations appear to be leading this movement toward a more secure retirement future.
The reality is that many Americans are facing an imminent retirement crisis, but it seems younger generations are learning from the experiences of their elders. As younger people become more engaged and take the reins of their retirement future, the 401(k) industry should take note. Like Generation X and Y, the retirement industry has a real opportunity to not only learn from the past, but to evolve and play an important role in the retirement revolution.