Retiring Baby Boomers Hand Big Problem to Gen X & Y

Is it any wonder why resentment is building between the Baby Boomers and younger generations, Gen X and Gen Y?

The following is an excerpt from a “state of emergency” speech delivered by Gov. Chris Christie (R-NJ) last week:

One state retiree, 49 years old, paid, over the course of his entire career, a total of $124,000 towards his retirement pension and health benefits. What will we pay him? $3.3 million in pension payments over his life and nearly $500,000 for health care benefits — a total of $3.8m on a $120,000 investment.

A retired teacher paid $62,000 towards her pension and nothing, yes nothing, for full family medical, dental and vision coverage over her entire career. What will we pay her? $1.4 million in pension benefits and another $215,000 in health care benefit premiums over her lifetime.

How many times will this scenario be repeated over the next decade as Baby Boomers retire?  And let’s not forget this little detail… the pension and medical benefit kitty that is supposed to pay these people.  Well it’s short just a few dollars – like $90 billion. To even keep up with annual payments, residents of New Jersey would have to pay $7 billion per year.

So it seems like we’ve got a problem that only Gen X and Gen Y can solve.  If only we had any jobs for them.


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