The entire generation born between 1946 and 1964 are at or nearing retirement age. Baby boomers retiring will have a great impact on the boomers themselves and on society as a whole. Concerns include the challenges of living on what may be considerably less income for many, the factor of age-related illness, and the potential of having to delay retirement due to changes in Social Security regulations.
The baby boomers are famous for proclaiming that they'll work past retirement age; an AARP study last year found 79% predicted they would continue working at least part of the time during their retirement years. How they'll actually feel once they're in their 60s and 70s, though, is an open question. Right now, the typical retirement age is 62, according to the Employee Benefit Research Institute, and 40% of retirees say they left the workplace earlier than they'd planned, often because of illness, disability or layoffs.
CBC News just released a new poll that stated, "A majority of baby boomers say they have taken a financial hit in the past three years and most now doubt that they will be financially secure after they retire, according to a new poll."
Are you confused about how much you can take out of your nest egg without running out of cash? The bad news: you're not alone. What constitutes a "sustainable" or "safe" withdrawal rate is the object of a lot of controversy in the financial-planning world these days. Many planners are persuaded by the research of CFP Bill Bengen, who has shown that a 3% to 4% withdrawal rate is safest.
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 baby boomers are famous for proclaiming that they'll work past retirement age; an AARP study last year found 79% predicted they would continue working at least part of the time during their retirement years. How they'll actually feel once they're in their 60s and 70s, though, is an open question. Right now, the typical retirement age is 62, according to the Employee Benefit Research Institute, and 40% of retirees say they left the workplace earlier than they'd planned, often because of illness, disability or layoffs.
CBC News just released a new poll that stated, "A majority of baby boomers say they have taken a financial hit in the past three years and most now doubt that they will be financially secure after they retire, according to a new poll."
Are you confused about how much you can take out of your nest egg without running out of cash? The bad news: you're not alone. What constitutes a "sustainable" or "safe" withdrawal rate is the object of a lot of controversy in the financial-planning world these days. Many planners are persuaded by the research of CFP Bill Bengen, who has shown that a 3% to 4% withdrawal rate is safest.
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.
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