| Baby Boomer-or Old Loser? | | | | longer an option. |
| They grew up in prosperous times and lived life | | | | How will boomers find needed funds in |
| to the hilt...but have baby boomers saved enough | | | | retirement? |
| for retirement? | | | | An Associated Press survey reported that the |
| In the eighteen years between 1946 and 1964, | | | | majority of boomers hope to retire from their |
| over 78 million babies were born in the United | | | | current jobs at around age 63. However, 66 |
| States. World War II had been good for the | | | | percent anticipate they will work for pay after |
| American economy, pulling it out of the Great | | | | retiring. Twenty-seven percent will continue to |
| Depression for good. During the "fabulous 50s," | | | | work out of financial necessity, 43 percent |
| unprecedented industrial growth provided steady | | | | because they can't picture "sitting around doing |
| employment and rising incomes. The four-child | | | | nothing," and 19 percent so that they will have |
| family became the ideal, along with a house in the | | | | money available for extras they could not afford |
| suburbs, two cars in the driveway, and that | | | | on their retirement income. |
| wonderful new invention, the television, in the living | | | | The majority of boomers foresee neither full-time |
| room. One-income families were the norm-and for | | | | leisure nor full-time retirement, but a combination |
| the middle class at least, one paycheck was | | | | of both. With 30 years of retirement a real |
| enough to supply families with an increasing | | | | possibility, they are looking for challenges, not |
| number of luxuries and new experiences | | | | rocking chairs. Some plan to launch new careers |
| While many boomers have invested wisely for | | | | or use their skills as volunteers. Others say they |
| retirement, the majority have just not saved | | | | will go back to school, start their own businesses, |
| enough. There have been incredible social and | | | | or try to turn a profit from a hobby. |
| economic changes since the 1950s, when | | | | Are You a "Wealth Builder"-or "Stretched and |
| boomers grew up with an innocent confidence | | | | Stressed"? |
| that life could only get better. Unlike their fathers, | | | | In The New Retirement Survey, Harris |
| who were likely to stay with one company and | | | | Interactive(R) and Age Wave questioned a |
| draw a sizable pension, many boomers have | | | | diverse population and identified five different |
| job-hopped-sometimes out of boredom or a | | | | types of soon-to-be retiring boomers: the |
| desire to find work that would make them happy, | | | | "Empowered Trailblazers," the "Wealth-Builders," |
| and sometimes because of mergers, layoffs, | | | | the "Leisure Lifers," the "Anxious Idealists" and the |
| outsourcing, and early-retirement buyouts. | | | | "Stretched and Stressed." |
| Skyrocketing housing, education, and healthcare | | | | About 18 in this group plan to work some after |
| costs have depleted retirement nest eggs as | | | | retirement, but they will also be busy with travel, |
| boomers have found themselves sandwiched | | | | volunteering, taking or teaching classes, and |
| between college expenses for their children and | | | | generally enjoying anything new that comes along. |
| care for their elderly parents. The increased | | | | "Wealth Builders" (20 will continue to work after |
| frequency of divorce has also left many boomers | | | | official retirement. |
| with much less in their IRAs and 401Ks than they | | | | "Anxious Idealists" (13) just want to relax. They're |
| thought they would have. | | | | sick of work, probably never liked their jobs, and |
| Then there are those who have put aside nothing | | | | definitely don't want to work after retirement. |
| at all. Perhaps they followed the advice in the | | | | They had low income levels and did not save |
| popular 70s song "Cast Your Fate to the Wind." | | | | enough, but they figure "someone will do |
| Or perhaps they lived paycheck to paycheck and | | | | something" to help them if they get into trouble. |
| simply never had anything to save. | | | | The "Stretched and Stressed" (18 chance of |
| Financing Retirement: How Much Will You Need? | | | | identifying with a group that feels it needs more |
| In 2008, the oldest of those 78 million boomers | | | | money for retirement. With the economy in |
| will turn 62 and will qualify for reduced-rate social | | | | constant fluctuation and costs of necessities rising |
| security payments. In the decades that follow, | | | | steadily, it's no wonder that most people fall into |
| more and more will qualify. As most people know, | | | | the "I need more money" category. Peace of |
| social security replaces only about 40 of their | | | | mind means knowing not merely that you will |
| pre-retirement income in order to maintain a | | | | somehow be able to survive, but that you'll have |
| comparable lifestyle. But that assumes that their | | | | the funds to allow you to enjoy the happy |
| expenses will decrease-that retirees will simply put | | | | retirement envisioned by the "Empowered |
| themselves on austerity budgets and make up | | | | Trailblazers." |
| the shortfall. Unfortunately, even if they want to | | | | YOU Control Your Future. |
| be more frugal, it won't be easy. Supplemental | | | | Fortunately, no matter how old you are right |
| Medicare policies and long-term care insurance are | | | | now, it is very possible to become a "Wealth |
| new expenses retirees must absorb, and | | | | Builder." This doesn't mean you have to become a |
| property taxes, home and auto insurance, energy | | | | workaholic or even keep working full time. |
| costs, and food expenses will all continue to rise. | | | | Instead, you can build an income generator that |
| The Worst That Could Happen... | | | | will provide funds for you to invest now and to |
| Boomers' biggest fear is that a healthcare crisis | | | | fund your retirement for many years into the |
| will use up funds they've set aside for retirement. | | | | future. And you can do it in the privacy and |
| Medical advances allow people to live much longer | | | | comfort of your own home, or even from your |
| than in the past, but their quality of life is often | | | | RV or vacation hotel. As long as you have |
| not the best, and spending for prescriptions that | | | | Internet access and a telephone, you can build a |
| prolong life is through the ceiling. Boomers are | | | | successful business that will quickly transport you |
| worried about living out their final years in an | | | | from a state of anxiety and pessimism about |
| unpleasant but expensive nursing home, or having | | | | retirement to one of financial confidence and |
| to ask their children for help. This fear is another | | | | security-ready to enjoy the rest of your life in a |
| factor that fuels the desire to accumulate just a | | | | style you may never have imagined possible. |
| little bit more money and take less from | | | | Is there still time? Absolutely. Obviously, the |
| retirement nest eggs so they'll be able to grow | | | | sooner you get started, the better. |
| and the funds will be available when work is no | | | | |