Retirement Catch-22 for Baby Boomers

Although this is an American report it is probably no less valid in most countries where Baby Boomers have to manage their own retirement nest egg. Baby Boomers are caught in a Retirement Catch-22 between their retirement expectations and their retirement preparedness.

The Report “Baby Boomers and Retirement: A Generations Catch-22” is the results of a survey done to find out how Americans feel about retirement. It is published by Thrivent Financial for Lutherans. It is only 16 pages but well worth reading.

Their Web site is very comprehensive and full of information about all facets of retirement. Even though it is organized for the Lutherans this site will help you to think about your retirement in an organized way. The topics discussed are relevant to all Baby Boomers world-wide.

It’s News section carries surveys on Baby Boomers so you can see what others are concerned about too. For instance here is the results of a survey to Reveal Retirees’ Priorities.

Here are some highlights from the report.

  • Whilst there is a general believe we will be better off in retirement than our parents about 71% of baby boomers cite lack of money as the biggest problem to them realising their retirement dreams.
  • 59% of baby boomers surveys had not gone through a formal planning process with a financial planner to plan their retirement.
  • 39% said they will need need to work during retirement to supplement their retirement income.
  • Of the 30% of baby boomers that want to work 43% want a low stress job that keeps them busy.
  • Starting to Save and Invest too late in Life was cited by 35% of baby boomers as to why they had not saved more for retirement.
  • Baby Boomers want the next generation to start saving early. 86% of baby boomers thought this the most important advice they can give the next generation.
  • Illness was cited by 50% of baby boomers as their biggest concern in retirement and what would have the biggest impact on their retirement.
  • Around 84% of baby Boomers did not think it important to leave money to their kids or a charity.
  • About a third of baby boomers do not intent to contribute time or money to a charitable organization.

The main theme of the report is that baby boomers are optimistic and have plans but many may not have the money to carry out those plans. It is obvious many baby boomers are ill-prepared for retirement and may have been convinced that they will be fine. They are in for a rude awakening if they retire without adequate money in their nest egg. These baby boomers have nothing to lose since they don’t have a nest egg to protect.

My point is if you have plans and have a nest egg for your retirement, you need to protect that nest egg so you can carry out your plans in retirement. That means taking control of your nest egg and protecting it from major losses.

I do believe an independent financial planner that understands the math of retirement can help you do that and should be employed to help you. As you age you will probably want to spend less time managing your money and it will be good to have a strong and long-term relationship with a financial planner you can trust.

2 Responses to “Retirement Catch-22 for Baby Boomers”

  1. […] Retirement Catch-22 for Baby Boomers […]

  2. Cathy Warren says:

    Great advice. A financial planner is able to be objective and practical regarding your finances. Do protect your nest egg and live within your means.

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