[disneysteve]

Scanner - It isn't a Gen X thing at all. It is the Baby Boomers and pre-Baby Boomers (whatever that generation was called) who are setting this trend. Why? Probably a combination of reasons. The Boomers have enjoyed a much higher standard of living than previous generations and don't want to give that up in retirement. There has been the loss of pensions, as you noted. At the same time, there has been a decrease in personal savings rates and an increase in typical debt load. That is leaving many Boomers financially unable to stop working and maintain anything near their current lifestyle. Also, there are non-financial issues. People are living longer, healthier lives and want to stay active and involved in society. They have defined themselves by the work they do and feel lost without a job to go to each day.

Overall, most of us enjoy a far higher standard of living than our parents' generation. I think we are pretty frugal relative to our peers, but it is still far better than I had growing up. Our house is bigger. It is furnished nicer. Our kitchen is stocked with high quality cookware and knives (we both love to cook). Our modest 27" standard TV is bigger than the biggest we had then. We have nicer cars with all kinds of safety equipment, air conditioning, better stereo systems than we had in our homes 30 years ago, etc.

In contrast, my 77-year-old mother lives very simply, as she always has. She gets by very nicely on SS and investment income, and that isn't because she has a 7-figure nest egg - she does not. It is because her needs and wants are few. She sold her house in 2006 and moved into a senior apartment complex. That resulted in a net gain of over $700/month for her between lower living expenses and higher investment income. Apartment living is way cheaper than owning a home, even though the home was paid off 40 years ago. She actually has a positive cash flow, taking in more money each month than she spends. How many future retirees will be able to say the same?