Retirement is changing for America, and for Baby Boomers as well. Born between 1946 and 1964, Baby Boomers are beginning to enter their retirement years and are vastly different from the generation preceding them.
Time stated that “the percentage of boomers who report feeling satisfied with their economic situation has plunged the last four years.” Reports show that only 55% of baby boomers have reported savings for retirement. Of that 55 percent, a whopping 42 percent have saved less than $100,000.
Baby boomers historically have been great savers, and have benefited from a robust economy for most of their working lives. It is not enough to rely on saving money, though. As retirement grows closer to the baby boomer generation, it is important to take stock in what your financial goals are and how you can meet them.
The Insured Retirement Institute found that only 24 percent of boomers are confident that they will have enough savings to last throughout retirement, and only 22 percent feel they are doing a good job preparing financially for retirement in general.
Generally, Baby Boomers have been too conservative in their investments signaled by a lack of stocks in their portfolios. It is important to be careful with finances as baby boomers grow older, but not being aggressive enough will put a burden on retirement planning.
Working longer is also a problem that the baby boomer generation is facing because they are living longer and staying healthy. Working longer allows boomers to get more from Social Security, as well as accumulate more retirement savings that don’t have to last as long.
Planning for retirement needs requires that boomers save consistently. Many will rely on social security to fund the majority of their retirement, even though research shows that boomers will need additional $37,000 a year on average to continue their present lifestyle.
What Baby Boomers Can Do
Although this information can seem unnerving, there is no need to worry if you have substantial retirement savings. Comfortability is relative and different for each individual, and will change depending on retirement needs and wishes.
Because the retirement landscape is changing, baby boomers need to understand that continued financial planning will be needed as situations change over time. Changes in situations such as costly medical bills and location changes will require the guidance of a qualified financial advisor.
Take action now to preserve a retirement lifestyle that is comfortable for you.
To begin your own planning today, contact Mike Gann, Financial Planner, CSA (Certified Senior Advisor), and the team at Advantage Retirement. Call 417-893-7233 or visit our office at 3506 S. Culpepper Circle, Suite B in Springfield, MO 65804.