The latest CBC poll indicates that most "Baby Boomers" are concerned about their retirement. The recent decade has devastated some peoples retirement savings with huge downsides to the stock market. With Europe in financial disarray, more downside may be around the corner.
Did you know, the longer you live, the more you'll benefit from delaying the start of your Social Security checks. Although you can start receiving checks as early as age 62, the amount of your checks increases the longer you wait, up until age 70. An analysis by T. Rowe Price financial planner Christine Fahlund found that if you expect to live until at least 80, you'd be better off waiting until after age 65 to start drawing benefits.
CDs typically offer interest rates that aren't much higher than the rate of inflation. Add in taxes, and you're often losing purchasing power. While CDs can be a part of your investment strategy in retirement, most retirees will need the long-term growth offered by stocks and stock mutual funds. The proportion of your portfolio that should be in stocks depends on your age, your risk tolerance and your growth needs, but many planners say the minimum for most people should be 50%.
Long-term care costs can be particularly devastating. A 65-year-old man faces a 27% chance of needing long-term care, said actuarial expert Christopher Raham, while the same age woman has a 32% chance. "Together, a couple has a 50% chance of having a long-term care 'event'," said Raham, a senior actuarial adviser for Ernst & Young in Atlanta and head of the company's retirement income innovation team. "And the average cost is about $150,000."
What boomers think retirement will be like and what it actually is like are two very different things. A case in point: The forever young generation just can't deal with the idea of growing old. Only 13% of pre-retirees (people over 50 who have not yet retired) think their health will be significantly worse in retirement than it is now, while 39% of retirees report that it actually is worse, according to 2011 research by the Robert Wood Johnson Foundation and the Harvard School of Public Health.
Boomers are expected to live longer than any other generation. At the same time, it's no secret they haven't saved nearly enough for retirement. Overall, the average retirement savings shortfall for married baby boomers is about $30,000, according to the Employee Benefit Research Institute. Nearly half of early boomers, born between 1948 and 1954, and 44% of late boomers, born between 1955 and 1964, may not be able to afford even basic living expenses in retirement, according to EBRI. The result? Kids could be supporting mom and dad well into their eighties and nineties.
The notion that a failure to plan is nothing more than a plan to fail is one of the more heavily trafficked pieces of common sense, but it appears that the baby boomers are exempt from its wisdom. Instead, it will be their children who will be forced to cover the costs associated with their failure to prepare for retirement.
Did you know, the longer you live, the more you'll benefit from delaying the start of your Social Security checks. Although you can start receiving checks as early as age 62, the amount of your checks increases the longer you wait, up until age 70. An analysis by T. Rowe Price financial planner Christine Fahlund found that if you expect to live until at least 80, you'd be better off waiting until after age 65 to start drawing benefits.
CDs typically offer interest rates that aren't much higher than the rate of inflation. Add in taxes, and you're often losing purchasing power. While CDs can be a part of your investment strategy in retirement, most retirees will need the long-term growth offered by stocks and stock mutual funds. The proportion of your portfolio that should be in stocks depends on your age, your risk tolerance and your growth needs, but many planners say the minimum for most people should be 50%.
Long-term care costs can be particularly devastating. A 65-year-old man faces a 27% chance of needing long-term care, said actuarial expert Christopher Raham, while the same age woman has a 32% chance. "Together, a couple has a 50% chance of having a long-term care 'event'," said Raham, a senior actuarial adviser for Ernst & Young in Atlanta and head of the company's retirement income innovation team. "And the average cost is about $150,000."
What boomers think retirement will be like and what it actually is like are two very different things. A case in point: The forever young generation just can't deal with the idea of growing old. Only 13% of pre-retirees (people over 50 who have not yet retired) think their health will be significantly worse in retirement than it is now, while 39% of retirees report that it actually is worse, according to 2011 research by the Robert Wood Johnson Foundation and the Harvard School of Public Health.
Boomers are expected to live longer than any other generation. At the same time, it's no secret they haven't saved nearly enough for retirement. Overall, the average retirement savings shortfall for married baby boomers is about $30,000, according to the Employee Benefit Research Institute. Nearly half of early boomers, born between 1948 and 1954, and 44% of late boomers, born between 1955 and 1964, may not be able to afford even basic living expenses in retirement, according to EBRI. The result? Kids could be supporting mom and dad well into their eighties and nineties.
The notion that a failure to plan is nothing more than a plan to fail is one of the more heavily trafficked pieces of common sense, but it appears that the baby boomers are exempt from its wisdom. Instead, it will be their children who will be forced to cover the costs associated with their failure to prepare for retirement.
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