Retirement, for many baby boomers it may be all a pipe dream. The Great Recession took its toll on many people, jobs were lost as businesses closed, retirement accounts were ravaged by falling stock prices. Caught in the middle of all the turmoil were many baby boomers.
The economy is improving now. But for many boomers the finish line has been pushed back for quite a few years if not indefinitely and the race is still on to replenish their lost finances.
For Kathy 61, who runs a home day care, an unexpected layoff of her husband undermined her plans for retirement.
"My husband had a good job at a local bank and we were going to try and pay off our debt in order to save up, so I could cut back on the number of kids I had and maybe partially retire. Then he got laid off and couldn't find full time work. Now even with him working again we are so far behind it will take us years to recover. My retirement is off for now."
Kathy understands the challenges the future holds. She has very little saved for retirement now and her and her husband haven't been able to start saving again.
Kathy is not alone. She is part of the group of 2 out of 3 boomers who find themselves in an unfavorable retirement situation. Kathy fears she is only one disaster away from financial ruin.
John 65, who is currently retired but working a paper route for extra money, wonders about the future. He worked for years as a truck driver and looked forward to retiring until he was laid off. In his late fifties he tried to find work, but struggled to even get an interview. He ended up taking an early retirement which meant he would only collect partial Social Security.
John says, "I didn't want to do it but I needed some sort of income."
What are boomers to do? Cut back even more than they already which is highly unlikely. Boomers do have some alternatives when it comes to cutting expenses. There are boomers who are combining households, renting out empty rooms in their houses or even selling what they have in order to move into low cost housing. The key is to remain calm and way all the options when it comes to planning for retirement.