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.”
