Ten Years After The Financial Crisis, Boomers Struggle To Define Retirement
North American Precis Syndicate
Most baby boomers are worried about having enough money for retirement—but you may not have to be if you consider these ideas. (NAPS)
(NAPSI)—If you or someone you care about is among the nation's estimated
76 million baby boomers entering or preparing for retirement, coping with the
fallout from the subprime mortgage crisis that
began in 2007 and triggered the Great Recession is probably still an issue.
As the crisis cut into boomers' net worth and lowered the value of their
homes, their confidence in achieving a personally satisfying retirement
dropped significantly, according to the Bankers
Life Center for a Secure Retirement. Today, only 37 percent of boomers
are certain they will have a personally satisfying retirement, down from 44
percent before the crisis.
Even before the crash, middle-income boomers were grappling with a "new
retirement" stemming from changes to their retirement programs, as employers
shifted away from defined benefit plans such as pensions to defined
contribution plans like 401(k) plans. With their confidence shaken, boomers
are further redefining retirement.
What does this "new" retirement look like? Boomers surveyed by Bankers
Life say they have lowered their overall expectations for financial
independence in retirement, compared to before the crisis.
The study reports that only:
• 34 percent expect to retire debt free
• 19 percent expect to pay off their mortgage
• 16 percent expect to pass an inheritance to heirs.
So what can you do to help restore your confidence that a personally
satisfying retirement is possible? Here are three good ideas:
1. Understand what your retirement
really looks like. Look to increase your financial independence by:
• Paying off debt: Debt payments should ideally be no more than 10 percent
of your income when you retire.
• Working part-time: Whether you work full-time, part-time or seasonally,
employment income will relieve pressure on your other sources of income.
2. Plan for the unexpected.
Only 28 percent of middle-income boomers have built up an emergency fund
since the start of the financial crisis. Plan for any unexpected costs that
can arise in retirement, such as long-term care or critical illness.
3. Allow an expert to support your
investment plan. One-quarter of middle-income boomers report they no
longer invest because of the crisis. Whether you want to resume investing or
simply create a savings plan, consider working with a financial professional,
especially if you don't think you have the financial resources to live
comfortably in retirement.
to download a free booklet on Top Tips for Retirees, including Reducing Debt
in Retirement, Medicare Enrollment, Managing Prescription Drug Costs, and
more. For further facts about achieving financial security in retirement,
On the Net:North American Precis Syndicate, Inc.(NAPSI)