3 HARD RETIREMENT TRUTHS FACING YOU AS A BABY BOOMER
This is a headline from USA Today, on their review of this important topic. Let’s take a look at three retirement truths facing Baby Boomers, according to the TCRS report.
Retirement Concern #1. Having to work longer or forever
Employment is no longer a taboo retirement activity. Sixty-five percent of Baby Boomer workers plan to work past age 65 or do not plan to retire at all. While a small handful of Boomers plan to keep working past age 65 or throughout retirement in order to stay involved, the majority need employment for financial reasons. In fact, 34% say they haven’t saved enough, 19% want the income, and 9% need health benefits. Only 21% of respondents expect to immediately quit working when they retire.
“For most Baby Boomers, retirement is no longer a point in time at which one immediately stops working. It is now a phased transition which may involve shifting from full-time to part-time work, taking on a position which is more satisfying and/or less demanding, or pursuing an encore career. Few Baby Boomers expect to immediately stop working when they retire,” said Catherine Collinson, president of the Transamerica Center for Retirement Studies.
Retirement Concern #2. Getting by with less
Money isn’t everything in life, but it certainly helps. A crippling combination of stagnant wages, stock market crashes, and poor savings habits have tarnished Boomers’ so-called golden years. The report finds that 44% of Boomer workers expect their standard of living to stay the same when they retire, and 41% expect a decline. A mere 8% anticipate an increase in living standards in retirement.
Making matters worse, 36% of Boomer workers expect to rely on Social Security as their main source of income, despite the program’s well-publicized shortfall. Retirement accounts are a close second at 34%, while company-funded pensions and other investments are tied for a distant third at 12%.
Without some type of reform, Social Security benefits will need to be cut by 23% in aggregate in 2033, according to a recent report from the Social Security Administration. In other words, after the depletion of reserves, continuing tax income is expected to be sufficient enough to only pay 77% of scheduled benefits in 2033.
Retirement Concern #3. Harboring mixed feelings
It’s not all doom and gloom when it comes to retirement. While the financial crisis decimated investment portfolios, household retirement savings have increased from $75,000 in 2007 to $127,000 in 2014 (estimated median). Nonetheless, if you weren’t invested in stocks or owned a home, you likely missed a significant portion of this wealth accumulation.
We have a bifurcated economic recovery. Some people feel like the Great Recession ended years ago, while others feel it’s still in process. Forty percent of Boomers believe the Great Recession has not yet ended, and 13% say they “may never recover.” This leads to mixed feelings about retirement. The report finds that 49% of boomer workers are “somewhat confident” about retiring with a comfortable lifestyle. Yet 38% are “not too confident” or “not at all confident” about a comfortable lifestyle. Furthermore, 43% “somewhat disagree” or “strongly disagree” that they are building a large enough retirement nest egg.
This report from USA Today leaves no doubt that money is a major retirement concern for Baby Boomers today, or should I say “lack of money”, which erodes confidence in their senior years.
Well then, what is a Baby Boomer to do about Retirement?
I realize not everyone will take action to do something about their situation, perhaps to make a career out of complaining about it. If that is not you, and you have:
- the desire to improve your situation
- the energy to take action
- the courage to take charge of your life
then you may want to consider your own business. Although their our different options available to you, my personal choice is a home business.
What do I see as the perfect home business?
For me it’s one that serves my need for liberty and autonomy, That translates into having the time and money to do what I want, where I want, when I want.
What is important to you? What are your values and needs?
I suggest compiling what is your vision for your future, what gets you up with passion in the morning, and decide to take action to make your dreams come true. I have heard that a dream without action is merely a wish.
I would be honored to contribute to your success and if you would like to discuss ideas, optional business ideas, then let’s compare notes. Right now, fill in the contact form below and let’s talk!
Let’s walk “success road” together! Let’s turn retirement concerns into retirement blessings.
Be blessed,
Ron
Ron McLean, the Dream Roper, helping YOU Lasso Your Dreams
text/cell: 864-404-6696
Schedule a call – ronmclean.biz