The savings rate in the US is atrocious and a negative savings rate is unsustainable. As interest rates improve for savings there is now more of an incentive (but perhaps not the ability due to the debt-laden consumer) to improve the savings rate. Hopefully this incentive and the next economic recovery will result in improved savings rates as these boomers mature.

The oldest boomers are just now in their early 60’s, with the tail end at their early 40’s. There is still time for these people to contribute to society in meaningful and productive ways and start saving and becoming more frugal as they age over the next 15 + years.

The $80 billion question is, will they ? and will it be enough ? I think some will, but many won’t and the next generation will learn from these folks and drive savings rates higher over the next 20+ years than the last 20.

I’m an optimist and a believer that economic excesses and deviations revert to the mean and that eventually savings rates will increase in the future. Getting their will definitely be interesting.