Baby Boomer Retirement Plan Bust Bad News for Gen Y

The average American has saved less than 7 percent of his desired retirement nest egg. Even those fast approaching retirement age are not well-funded. Respondents aged 50 to 59 have saved an average of only $29,000 for retirement.

Middle-class Americans think they need $300,000 to fund their retirement, but on average have only saved $20,000, according to a survey released by Wells Fargo & Co.  Consequently, more than a third of respondents believe they will have to work during retirement in order to afford the things they want or just to make ends meet.    

"Middle class" is defined as those aged 30 to 69 with $40,000 to $100,000 in househoAld income or $25,000 to $100,000 in investable assets and those aged 25 to 29 with income or investable assets of $25,000 to $100,000.

This is another blow for Generation Y.  The percentage of Americans with at least a bachelor’s degree who are unemployed reached 5.1 percent, the highest figure since the Bureau of Labor Statistics started tracking the number in 1970.

Meanwhile, national unemployment rose to 9.8 percent from 9.6 percent last month. Those with advanced educations have a massive impact on the overall rate of unemployment as that group accounts for 30 percent of the labor force.

Unemployment levels for lower-educated individuals however, still remain much higher. Ten percent of high school graduates are unemployed and an even larger 15.7 percent without high schools diplomas are jobless. That's particularly troubling when you consider that 30 percent of young people still drop out of high school in the United States.

Creating jobs is obviously a priority for government and business to revitalize our economy.  But the unemployment rate will remain high for years to come with so many unemployed workers who have achieved a high school diploma or less.