Millennials (ages 18 to 34) are starting to save for retirement earlier than any other generation, according to a new study. Many are investing by age 22, compared with baby boomers who started on average at age 35, says USA Today.
That’s a good thing, because the current U.S. “fiscal gap,” – the present value difference between future projected spending (including servicing the official debt) and future taxes – grew to a mindboggling $222 trillion last year — the largest of any country in the world relative to the economy. Taxes on future generations would have to increase by 21.5 points to close the fiscal gap.
“Putting our fiscal house in order in a generationally balanced way should be an imperative for both parties,” says Laurence Kotlikoff and Nick Troiano in a Roll Call editorial. “We cannot continue to ignore the economic and moral injustice being wrought on future generations because of our inability or unwillingness to face the facts.”
“I am here today to thank the Georgia Public Policy Foundation for your role in building a fiscally conservative, pro-growth state. Not only did you help pave the way for a new generation of leadership, you continue to provide key policy advice and to hold us accountable to the principles we ran on. In short, you have had a transforming influence on this state. We are healthier, stronger, and better managed because of your efforts.