Will You Outlast Your Retirement Savings?

It used to be when you retired you got a gold watch (or some other trinket), a send-off party, and a nice pension to rely on every month in addition to your social security check.  At one time nearly 90 percent of private sector workers had a pension as their workplace retirement plan which was FULLY FUNDED by the employer.  Today that number is down to 33 percent.

These days the idea of collecting a pension from your employer is practically non-existent. Unlike our parents, most baby boomers aren't likely to spend their entire working lives on one job to benefit from a pension.  In addition, more employers have opted to offer 401K retirement plans where you have to contribute a portion of your salary if you expect to get anything in return. 

According to a survey by the Insured Retirement Institute, only 24 percent of baby boomers were confident their savings would last throughout their retirement years.  That's a dismal thought considering the fact that we are retiring at a rate of 10,000 per day through at least 2030.  What's even more dismal is the survey also indicates approximately 35 million of us lack any retirement savings today.

Admit it.  If you knew then what you know now, you would've been saving like crazy.  Back in the 80's I had a retirement savings plan.  I had no real clue of its value so I used it as my personal spending account.  I FAILED to plan for my future life expectancy and even though I pride myself with being smart I was financially illiterate.  I had a lack of knowledge about what it meant to do retirement planning and saving and when you have a LACK OF KNOWLEDGE you have a lack of savings and investments.

 Financial Investment Advisor, Chris Gure says "Baby Boomers have spend the last 30 plus years in the workforce accumulating their savings in order to retire.  It should be imperative to them to have a trusted financial advisor to help alleviate their financial stress." And while the 401K may help jump start your retirement, Gure says it may not always be tailored for a retiree's changing investment needs, transitioning from accumulation to distribution isn't always easy and that's why it's important and helpful to have someone guiding you through the process.

There's an old Chinese proverb that says, The best time to plant a tree was 20 years ago. The second best time is now (or 40 years depending on how old you are).

Move Over Baby Boomer Because The Millennials Are Here

You walk into your new-hire enrollment meeting to see a 50-year-old man fumbling with the computer and telling you to take a seat. It’s a scene you’ve been conditioned to seeing throughout your academic career. The instructor introduces himself and lets you know it will be six weeks before you actually start working and he is going to be your guide to learning the “new computer systems.” You instinctively roll your eyes and get your phone out. Without a tiniest effort you can find a YouTube video that will teach you everything this man knows about a “new computer system” in 30 minutes, not 6 weeks.

You take a deep breath as he hovers over the start button for the full display to come up as he moves over each option before landing on ‘programs’. Think about how you wanted to start meditating as he accidentally clicks away onto the screen and is about to have to restart this 5 minute ordeal. What is this guy going to “teach” you next? How to open Microsoft paint? I’ve been ignoring my middle school teacher for years playing with that. Maybe he’ll open your eyes to the world of Excel?! You finished your capstone class in college with advanced pivot tables and if this guy pivots too hard he’s going to break a hip.

Yes, a changing of the guard is taking place.  With all of their fanfare and glory over the years, baby boomers are reluctantly realizing a new generation has arrived and we are setting the tone for the workplace of the future.  We win, hands down, when it comes to technology, although we may lose out on those soft skills like actually talking to each other face-to-face. 

Baby boomers have been in the workplace and building relationships for years.  They may have worked for a Company longer than we’ve been alive. They are accustomed to making the high five and six-figure incomes and used to running “the show” their way.  You know what I’m talking about:  “It’s my way or the highway!” attitude.

But now with more than ten thousand boomers turning 65 and becoming eligible for retirement annually, it’s our turn to step up and take our rightful places in the workforce.   

You can read more in the new book: The Baby Boomer/Millennial Guide to Understanding Each Other in the Workplace.

Written by Chris Gure