Will Baby Boomers have enough money to retire and enjoy their retirement?
Like me, I bet you’ve seen TV commercials in which the Investment companies asking people how much money they think they need to be putting away for their retirement. Baby Boomers are at that place and when asked “How can I make this money last?” for most the answer is, I don’t know. http://www.cnbc.com/id/102581574
Michael Yardney confirmed that 74% of baby boomers have no idea how much it’s going to take to retire “comfortably”. According to the US Labor market more people are working after the age of 55. Since 1990, the number of people still working in their 60’s has increased every year. http://blogs.wsj.com/economics/2014/08/14/the-truth-about- retirement-for-baby-boomers/
(Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy.)
According to Warren S Hersch, “two-thirds (62 percent) of middle-income boomers doubt they will have enough money to live comfortably throughout retirement.
About half (48 percent) of those who work with a financial professional are confident they’ll have enough money to live comfortably in retirement regardless of asset level, while less than a third (30 percent) without a professional feel that way.” http://www.lifehealthpro.com/2014/11/11/the-boomer-retirement-gap-13-key-findings-infograp
These are pretty astounding numbers and certainly make you think if you are getting closer to retirement. What will retirement be like for you? Kathleen Pender who writes the net Worth Column for the San Francisco Chronicle has posed the following questions with some astonishing answers.
Will Baby Boomers have enough money to retire? Read the Next article from the San Francisco Chronicle.
From the Net Worth Column of the San Francisco Chronicle
How much money will you need to have saved to retire?
One financial planning firm says you should have eight times your final annual salary in investments (excluding your primary home). Another company says 12.5 times is more like it.
These rules of thumb work in both high-cost and low-cost areas because they are based on your current standard of living.
The real answer, of course, depends on your individual circumstances, including your income, age at retirement, life expectancy, expected rate of return on investment, housing situation, medical conditions, insurance and whether you want to leave anything to children or charity.
But figuring that out takes a lot of work. Only 44 percent of workers say they or their spouse have ever tried to calculate how much money they will need to have saved by the time they retire, according to a survey by the Employee Benefits Research Institute.
What are your Options?
What are your options if you find yourself falling short of what you think you will need? Many are choosing to work more years. which is born out by the Wall Street Journal and the numbers they got from the Federal Reserve.
It’s important for baby boomers to enjoy their retirement. Their top priority is to be able to afford to take vacations after they retire. Unfortunately, many are concerned about their retirement prospects, which can be seen through the lens of the sfgate.com article. Only 29% believe that they will have enough money to retire. Only 19.4% think they will be able to rely on property retirement funds to retire. They may want to downsize and use their profits to invest or live on.
These are are all interesting statistics and can be a bit overwhelming. You may be wondering about where you fall after reading the numbers and wondering how this relates to your future.
Many Baby Boomers are looking at alternative ways of earning another income by working from home which is something I have done myself. Others are continuing to work at their jobs much longer than they originally planned.
I would like to hear your comments about today’s post. I’d like to know if any of the details match your experience or are yours different. Feel free to leave your comments below.
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