Baby Boomers Are Not Prepared for Retirement
According to the Insured Retirement Institute (IRI), many Baby Boomers are not prepared for retirement. That’s a situation that no doubt weighs heavily on the minds of individuals and couples rapidly approaching retirement without adequate (or any) retirement savings. In fact, however, this situation should concern everyone as it foreshadows a problem that will inevitably impact the U.S. economy at many levels.
Within the demographic identified as Baby Boomers (those born between 1946 and 1964):
- 40 percent have no retirement savings at all.
- 69 percent have no defined benefit plan.
- And even among those who do have savings, 59 percent have saved less than $250,000 and 37 percent have saved less than $100,000.
Why does this spell trouble for the entire economy? Boomers account for a significant percentage of the population. Pew Research Center population projections show that by 2030, when the last of the Baby Boomers will have turned age 65, 18 percent of the nation’s population will be 65 or older.
In March of 2012, US News, published a report stating that, at that time, there were, “5 million baby boomers … on the verge of retirement. For the next twenty years, an average of 10,000 people each day will reach age 65, which has historically been the retirement phase of life.”
These are scary numbers, regardless of whether you are a Baby Boomer yourself, your parents are Boomers, or you are simply concerned above the overall economic impact of millions of adults trying to get by with nothing more than Social Security checks to support them.
- Read the full article published on Plan Adviser: “Boomers in Poor Shape for Retirement.”
- Follow this link to learn more about Social Security and the U.S. Social Security Administration’s recent announcement that for only the third time in the history of the program, there will be no cost of living increase in for the upcoming year. Law Does Not Provide for a Social Security Cost-of-Living Adjustment for 2016