If you were to retire today, how much longer could you survive before your money runs out?
That's a question some of us don't think about or don't want to think about but the truth of the matter is the future is going to look gloomy for many baby boomers and they know it.
In a survey, people between the ages of 44 and 75 were asked what they feared more: death or running out of money.
61 percent said they feared running out of money
39 percent said death
56 percent said they are afraid they won’t be able to cover their basic living expenses in retirement.
36 percent said they had no idea whether their nest egg was sufficient
Allianz Life Insurance Co. of North America, conducted the poll of 3,257 people.
Showing posts with label "beverly mahone" "baby boomers and retirement". Show all posts
Showing posts with label "beverly mahone" "baby boomers and retirement". Show all posts
Sunday, August 15, 2010
Sunday, July 18, 2010
The Price of Living Longer
Living longer is going to cost many baby boomers, according to a recent study conducted by The Employee Benefit Research Institute.
A third of middle-income workers will likely run out of money after 20 years of retirement and significantly more lower-income workers will deplete their savings after 10 years, according to the new study.
The nonpartisan research group based in Washington says its retirement readiness study found that living longer, saving too little and inadequate planning for health care costs will leave many retirees short of money to pay basic living expenses.
The study finds that 64 percent of workers earning less than $30,000 a year will run out of money within 10 years of retiring. About a third of workers making between $30,000 and $70,000 will run out of money after 20 years of retirement. One in 10 workers making more than $70,000 won't have enough money.
"Early" baby boomers, meaning people who now aged 56 to 62, have a 47 percent chance of not having enough money to pay basic retirement costs and uninsured medical expenses, the study concluded.
"Late" boomers aged 46 to 55, as well as Generation X workers aged 36 to 45, have about a 45 percent chance of running short on cash.
Jack VanDerhei, research director for EBRI and author of the study, says baby boomers need to stop deceiving themselves into thinking they are going to have enough money for retirement.
Many workers will likely be forced to continue working beyond retirement age.
A third of middle-income workers will likely run out of money after 20 years of retirement and significantly more lower-income workers will deplete their savings after 10 years, according to the new study.
The nonpartisan research group based in Washington says its retirement readiness study found that living longer, saving too little and inadequate planning for health care costs will leave many retirees short of money to pay basic living expenses.
The study finds that 64 percent of workers earning less than $30,000 a year will run out of money within 10 years of retiring. About a third of workers making between $30,000 and $70,000 will run out of money after 20 years of retirement. One in 10 workers making more than $70,000 won't have enough money.
"Early" baby boomers, meaning people who now aged 56 to 62, have a 47 percent chance of not having enough money to pay basic retirement costs and uninsured medical expenses, the study concluded.
"Late" boomers aged 46 to 55, as well as Generation X workers aged 36 to 45, have about a 45 percent chance of running short on cash.
Jack VanDerhei, research director for EBRI and author of the study, says baby boomers need to stop deceiving themselves into thinking they are going to have enough money for retirement.
Many workers will likely be forced to continue working beyond retirement age.
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