Are you a baby boomer thinking about retiring soon? Or will you continue to work past retirement age? Do you want to retire or would you rather work? If you would rather work, is it for financial reasons or because you prefer to work? Here are some interesting facts about how this generation's retirement plans are different from the present retired generation.
Are you one of the millions of people in their 50s or 60s who have to take another look at their retirement plans during these rocky, economic times? If so, you are not alone.
Many of this age group have had to relook at their retirement plans due to their 401k savings, IRA's and homes being devalued, as well as the general uncertainty about what is going to happen next?
A study (2009) by the Employee Benefit Research Institute (EBRI) has resulted in some sobering facts:
- less than one-quarter of American workers (55 and older) have accumulated savings and investments of $250,000 or more.
- 60 percent have less than $100,000 accumulated savings and investments.
Longer life spans require larger nest eggs that may not last as long as the retiree's life.
These hard times are especially a reality for the oldest members of the baby-boomer generation.
According to the ERBI report:
- 13% of workers in 2009 said they were very confident of having a comfortable retirement (lowest percentage since 1993)
- 27% of workers in 2007 said they were confident about having enough money for a comfortable retirement.
Some workers today are delaying their retirement, which could have a triple benefit for them:
- Every year beyond normal retirement age allows more time to rebuild retirement funds
- It increases Social Security (SS) benefits
- it reduces the number of years of dependency on retirement nest eggs.
Next Article - Part II - Retire Soon or Wait? How this generation differs from the past retired generation. This information is not intended to provide advice or individual recommendations; it is provided for educational and reference purposes only.
Marie Coppola June 2010
Reference permission granted by William J. Lynott, "It's Your Business" : "Should You Delay Retirement"? May 2010
Comments
I wish I could still work and make some decent money but I am disabled now, and at 55 I have resigned myself to the idea that I will am permanently out of the workforce
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