Why Boomers Are Not Saving Enough For Retirement
retirement (Photo credit: 401(K) 2012)
The statistics show half of all Americans are not saving for retirement. According to Life Insurance and Market Research Association(LIMRA), a financial services trade organization, one-third of Americans over age 50 have worked with a financial advisor.
The survey asked consumers what investment vehicles they were using to save for their retirement (when they were) and according to Drinkwater, only 45% of respondents in their 50s were contributing to a defined contribution plan, while 16% were contributing to a Roth and 20% to a traditional IRA. Here’s the more-troubling stat: Drinkwater says a survey conducted earlier this year showed 29% of those 55 or older reported being confident they were saving enough money to last through retirement.
Many boomers have come to realize that they don’t have enough money coming in to save for retirement because of daily expenses like food, housing, gas and putting kids through college. Many have accepted the premise that they just won’t retire. They will have to keep working as long as possible and make ends meet with their Social Security when they can’t work.
The flaw in that plan is 56% of workers, more than half, do not stop working by their own choice. Their position is eliminated or they are just let go. Boomers may plan on working into their 70’s but their employers have other ideas. Between loosing their job and living longer than they planned to, the money just won’t be there to sustain them financially.
Category: Retirement
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