Skip to comments.Boomers Not Ready For Retirement
Posted on 11/28/2006 10:10:49 AM PST by seacapn
GAINESVILLE - From all appearances, America's baby boomers are a nation of procrastinators wearing rose-tinted glasses.
They think just because they worked all their lives - many starting as early as 16 - they deserve a retirement with the same income as at the peaks of their careers.
Oh sure, there will be some health benefits they'll have to pay for, and heaven knows what gasoline will cost in 10 years. But they'll still be in their homes, drive two cars and take cruises whenever they like.
But recent surveys show that probably isn't going to happen.
The 16th annual Retirement Confidence Survey conducted by the Employee Benefit Research Institute found that a large majority of Americans expect to enjoy a comfortable retirement, but many have not taken the actions needed to turn their aspirations into reality and face the prospect of having to work far longer than they expect.
Their expectations are termed "Swiss cheese" - full of holes.
Twenty-four percent of respondents said they are "very confident" they will have enough money to live comfortably in retirement, and another 44 percent said they are "somewhat confident."
But 22 percent of the respondents aren't setting aside anything for retirement. Another 40 percent have saved up less than $50,000.
(Excerpt) Read more at theledger.com ...
Only 40 percent of workers indicate they or their spouse have a defined benefit plan, yet 61 percent say they are expecting to receive income from such a plan in retirement. Some 101,000 single-employer-defined benefit plans with approximately 7.5 million participants were terminated between 1986 and 2004.
Don't think for a moment that millions of Baby Boomers will take an impoverished retirement in stride - get ready for a wave of giant government interventions and bailouts.
Young people better learn to vote, and fast.
Vote for who? The Republicans that are happily jacking up Medicare costs with new giveaways we can't afford, or Democrats who invented the concept?
I've thought about that quite a bit. We're living somewhat hand-to-mouth now while I'm putting 15% of my salary into 401k so we'll be OK for retirement in 10-15 years. And I'm very concerned that my 401k will be the place those who didn't save will want to get their retirement income from.
It's called "stealing". Read "Mrs. Tyson's Fried Economics".
Paid for by whom? When we retire,they'll only be about two people of working age to support each retiree.And half of those will be "disabled" thanks to legislation passed by the RATS.
Boomers need to understand that their retirements won't be nearly as long or nearly as comfortable as was their parents' retirements.
It's possible, but what can you do? NOT save? That'll show 'em, all right. :) I'm amazed at what it says above that 40% of boomers have saved, since my husband and I are above ten times that, and we still have ten years to go. I'm definitely funding my retirement accounts to the maximum allowed, and I think those of us who have will be prepared to "up the barricades" against raids.
Unfortunately, I think your fears are well-founded. When this big wave of Boomer retirees gets hit by a financial crunch, they will instinctively look for pools of money to raid and "redistribute." I'm not sure what the solution is aside from people saving more money. But what are the chances of THAT?
I'll send you a bleeding heart decal for your car if you do.
Looks like I need to up the barricades sooner than I thought. :)
Here is the problem with Boomers --- EVEN IF THEY DON'T WANT TO RETIRE AND WANT TO WORK, THEY WILL BE EITHER :
1) Forced to retire anyway due to overseas or younger competition.
2) Mostly unable to get employment for the salary that they're used to.
Think of it this way -- you're the average NBA basketball player who used to be competent and who used to be competitive in court with a peak salary at $8 Million per year. You're now 36 years old and your legs don't hold up as well as they used to.
Your contract is finished with say the New York Knicks. Still, you feel you have 3 good years left. If a team is going to still wnat to use you coming off the bench, are they going to pay you what you used to get ? NOT A CHANCE.
See for instance -- Gary Payton of the Miami Heat.
That's what Boomers who still want to work are faced with.
Exactly! Baby Boomers will be a huge voting block and young people will not vote to cut off grandma.
That's my biggest nightmare. What an untapped resource for future "wealth redistribution". Yikes. All that 401K money tucked away for the government to tap into.
That WILL happen as social security will be means tested and you will be penalized for saving (and counting on social security).
I have a defined benefit pension... So does my spouse... And we have soaked away quite a lot of money (any extra income went to savings)... But I still worry that I won't have enough...
I really do not understand the people in this article!
It might get ugly.
"A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury."
I have seen you post that quote before. I believe it, and I believe we are watching it happen. Americans are rapidly adopting an entitlement mindset.
On a local morning news television program they had a segment about the "white scholorship" at BU with call ins. One caller in particular struck me, she said something to the effect: "I have no problem with that, everyone DESERVES benefits".
Yep, everyone deserves to have everything handed to them. In Ohio, the voters ammended our constitution to tie the minimum wage to the rate of inflation. Of course people "deserve" that.
I just do my best to mind my own business and keep an eye open on where a good place would be to move when this place goes nuts.
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