Whether retirement is just around the corner or quite a ways off, it is not a subject that should be taken lightly or ignored. But it seems that American Baby Boomers have been doing just that.
Baby Boomers are the demographic group born during the post-World War II baby boom, roughly between the years 1946 and 1964. As such, they have begun retiring and will continue to do so for the next dozen or so years.
The Motley Fool shares statistics from an Insured Retirement Institute survey that shows that the majority of Baby Boomers are not ready to retire.
“1. Only 24% of Baby Boomers are confident they will have enough savings to last throughout retirement.
2. Of the Baby Boomers who lack confidence, 68% said they would have saved more, and 67% said they would have started earlier, when asked what they would have done differently.
3. Just 39% of Baby Boomers have tried to figure out their retirement savings need.
4. Only 55% of Baby Boomers have any money saved for retirement.
5. 59% of Baby Boomers cite Social Security as a major source of their retirement income.
6. 65% of Baby Boomers are worried about future changes to Social Security.
7. Only 43% of Baby Boomers are satisfied with how their lives are going from an economic perspective.
8. 26% of Baby Boomers don’t plan to retire until age 70 or later.
9. Only 22% of Baby Boomers believe they are doing a good job of preparing financially for retirement.
10. Only 27% of Baby Boomers believe they will have enough money for healthcare expenses.”
Quite sobering in my opinion. If you are in the Baby Boomer generation, how do you compare? If you are younger, then there are certainly some lessons to be learned and a chance to alter course if warranted.
One stat that really stands out for me is the number of people who are dependent on Social Security vs. the number of people worried about the future viability of Social Security. Not a good situation.
So, how much do you need to retire comfortably?
“In general, experts suggest that you’ll need 80% of your pre-retirement income to sustain your quality of life after you retire. So, step one is determining how much income you’ll need to live comfortably.
Next, figure out how much will come from other sources, such as Social Security and any pensions you may have.
Subtracting your other income sources from your income need tells you how much will need to come from savings.”
If you have fallen behind and do not see yourself having the savings you need to retire, there are steps you can take to get back on track. The time to get started is right now.
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