Baby boomers, one of the largest generations in U.S. history and some 76 million strong, remain demographically in charge. If you’re one of this generation, born from 1946 to 1964, you help influence just about every aspect of American life, enjoy more discretionary income than any other age group, and control your share of some 70 percent of the total net worth of all American households. If you’re a boomer, you also face serious retirement threats.
As financial planners at Glassman Wealth Services who see many boomers, we find five important problems keep coming up.
1. Longer retirement: By 2020, an astounding 8,000 persons will turn age 65 every day. The real threat: Almost half of boomers simply save too little for a comfortable – and lengthy – retirement.
As a boomer, you can also expect to live longer than your parents or grandparents. Unlike past generations that planned for perhaps 15 years of retirement, you and other boomers must prepare for as long as 30 years or more – longer than many working lives.
2. The Great Recession: Bear markets of the dot-com crash and the more recent housing collapse set back boomers’ wealth and retirement savings – which depend more, unlike many previous generations’, on Wall Street.