Boomers Unprepared for Retirement

Boomers who tended in their youth to live for the moment need to wake up according to Washington Post columinist David Ignatius--who writes as a fellow boomer

"People have accused the baby boomers of being whiners almost since we were born. But just wait until we get to retirement age and discover that we don't have nearly enough money to take care of our "golden years." That's going to be the ultimate generational bummer."

According to new research boomers who have not taken seriously the need to prepare for their "golden years" are about to get hit with another whammy--the recent economic meltdown:

"53 percent of households that hold at least one retirement account, the median combined balance was a mere $45,000.Hold on, you say, that figure includes some younger workers who haven't started saving in earnest yet. Okay, for households headed by persons between the ages of 55 and 64, the median value of all retirement accounts was just $100,000. Purcell noted that for a 65-year-old man retiring last month, that $100,000 would buy an annuity that would pay a paltry $700 a month for life, based on current interest rates. And here's an extra bit of bad news: The Fed data used in Purcell's study were gathered in 2007. With stock market declines since then, the median account balances are probably even lower now."
Ignatius quotes from a poll released in January by the National Institute on Retirement Security showing that "83 percent.. were worried about having a secure retirement; of those with a 401(k) account, only about half thought they would have enough money to retire. And 71 percent said it was harder to retire now than for previous generations."

So no longer is the line "I am going to work until I drop" a throwaway line--it is going to be all too true of our fellow boomers. Boomers helped by people like Madoff, may have killed retirement as a serious option in America for a generation or more, except as an option for the extremely wealthy--and even many of those (haven't you noticed) --prefer to keep on working.