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Study: Many Boomers Lack Retirement Fund
http://biz.yahoo.com/ap/070730/boomers_savings.html?.v=2 ^

Posted on 07/30/2007 7:31:07 PM PDT by traumer

Study Says Nearly One-Third of Older Baby Boomers Haven't Saved Enough for Retirement

NEW YORK (AP) -- Nearly one-third of baby boomers ages 51 to 61 are at risk of not having enough in savings to finance a comfortable retirement, according to a study being released Tuesday by the Center for Retirement Research at Boston College.

With its analysis, the center has joined the national debate over how much savings is enough -- and has done so on the side that says there's a shortfall.

"We just don't believe people are saving too much," Alicia H. Munnell, a professor of management sciences at Boston College and director of the retirement research center, told The Associated Press.

A recently published academic study looked at the retirement preparedness of Americans who were in their 50s in 1992 and concluded that at least 80 percent had more than enough assets for retirement. Other scientists have argued that Americans may be saving too much.

The new Boston College study evaluated the same 51-61 age group, but looked at their finances in 2004, and found 32 percent to be "at risk" for not being able to maintain their preretirement standing of living in retirement.

The difference between the results, the center said, has to do with changes in the financial environment. For one thing, Americans now must wait until they're older than 65 to collect full Social Security benefits; meanwhile, lower interest rates mean they'll probably collect less on annuities and other investments. And many of today's workers do not have pensions like the earlier generation but must rely on worker-funded 401(k) retirement accounts, the center said.

Munnell said Americans have two choices -- to save more or to work longer.

For older people, "working just two years more ... can make a substantial difference" to retirement preparedness, she said.

"Working longer has a powerful effect because it shortens the period over which you have to support yourself and ... lets you put off tapping your 401(k) and collect higher Social Security benefits," she said.

The study was done using the center's National Retirement Risk Index, developed with funding from Nationwide Financial, the long-term savings and retirement product division of the Nationwide Mutual Insurance Co.

Keith Millner, senior vice president and head of Nationwide Financial's in-retirement division, said "there is a retirement crisis" because people are living longer, health care costs are escalating and workers aren't saving enough.

"The No. 1 issue is inertia -- people aren't doing anything," he said. "They need to get educated, get engaged."

Young workers especially can benefit from saving more because of the impact of compounding, he said.

Center for Retirement Research: http://www.bc.edu/crr

Nationwide Financial: http://www.nationwidefinancial.com


TOPICS: Business/Economy; News/Current Events
KEYWORDS: babyboomers; genx; retirement
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1 posted on 07/30/2007 7:31:09 PM PDT by traumer
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To: traumer

“Shop till you drop” will become WORK TILL YOU DROP...


2 posted on 07/30/2007 7:32:12 PM PDT by traumer
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To: traumer; qam1

Baby Boomer retirement plan: Tax their children!


3 posted on 07/30/2007 7:34:14 PM PDT by Incorrigible (If I lead, follow me; If I pause, push me; If I retreat, kill me.)
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To: traumer

They all believe Hillary when she promises that social security will be there to take care of you in your old age. They are counting on old people not being able to shoot straight.


4 posted on 07/30/2007 7:34:53 PM PDT by Brilliant
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To: traumer

duh...gotta have that vacation every year, a new car, cable TV, a cell phone and saving is... well... hard. Plus the government will take care of me.


5 posted on 07/30/2007 7:35:02 PM PDT by Wheee The People (Go FRed)
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To: Wheee The People

Some folks can’t resist living for now. They were born broke and that’s the way they’ll die too.


6 posted on 07/30/2007 7:36:37 PM PDT by B4Ranch ( "Freedom is not free, but don't worry the U.S. Marine Corps will pay most of your share.")
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To: B4Ranch

The article says retirees don’t have enough saved to keep their pre-retiree lifestyle. Well double duh.


7 posted on 07/30/2007 7:41:04 PM PDT by pacpam (action=consequence and applies in all cases - friend of victory)
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To: Wheee The People

And don’t forget the lardasses who run to the buffet 3X per week.


8 posted on 07/30/2007 7:41:12 PM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: pacpam

its awesome i have no lifestyle im bulletproof


9 posted on 07/30/2007 7:42:05 PM PDT by Flavius
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To: traumer
My Dad always taught us...by example,not by words...to work,work,work...save,save,save...and live beneath your means.That’s one of several important lessons he taught me for which I’ll be forever grateful.
10 posted on 07/30/2007 7:43:48 PM PDT by Gay State Conservative (If martyrdom is so cool,why does Osama Obama go to such great lengths to avoid it?)
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To: traumer

Sell the multi bedroom, multi bathroom home.
Why 1 or 2 people in 3 - 4 bdrm homes
Sell one of the cars or better yet all of them.

Put the money in savings or invest a small part of it.

Folks create their own problems.


11 posted on 07/30/2007 7:47:06 PM PDT by SoCalPol (Duncan Hunter '08 Tough on WOT & Illegals)
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To: traumer

Everybody seems to forget “Senior Discounts” at Denny’s.


12 posted on 07/30/2007 7:49:11 PM PDT by irishtenor (There is no "I" in team, but there are two in IDIOT.)
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To: traumer

Retirement? I know of twenty-somethings with $25k to $40k on credit cards. That maybe a hole too large to dig out of...


13 posted on 07/30/2007 7:50:17 PM PDT by Libloather (That's just what I need - some two-bit, washed up, loser politician giving me weather forecasts...)
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To: traumer

Retirement funds,come on huh? We the boomer generation have been the most TAXED generation in the friggin history of the country. True there have been opportunities for some but we’ve also been expected to carry the financial water for a country that’s gone big time socialist with welfare,disability as well as education,highway system cost,foreign aid and tons of other special interest expenses.Save me the BS of retirement funds huh !!!


14 posted on 07/30/2007 7:52:51 PM PDT by Obie Wan
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To: traumer

“Study: Many Boomers Lack Retirement Fund”

Those of us that have a retirement plan will not have it long... if the hildebeast gets in!

LLS


15 posted on 07/30/2007 7:53:06 PM PDT by LibLieSlayer (Support America, Kill terrorists, Destroy dims!)
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To: traumer

I’m waiting for the Super Anti Oxidants that scientists are promising so I can live to 140 and work till I’m 132. Won’t that be great?


16 posted on 07/30/2007 7:53:34 PM PDT by gbs
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To: rbg81
And don’t forget the lardasses who run to the buffet 3X per week.

The "lardasses" are not likely to put off the cardiac arrests long enough to need that retirement income.

17 posted on 07/30/2007 7:56:33 PM PDT by bikerMD (Beware, the light at the end of the tunnel may be a muzzle flash.)
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To: Obie Wan

Ditto and don’t forget about AMT.


18 posted on 07/30/2007 8:06:35 PM PDT by PA Engineer (Liberate America from the occupation media.)
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To: Incorrigible; ItsOurTimeNow; PresbyRev; Fraulein; StoneColdGOP; Clemenza; m18436572; InShanghai; ...

Xer Ping

Ping list for the discussion of the politics and social (and sometimes nostalgic) aspects that directly effects Generation Reagan / Generation-X (Those born from 1965-1981) including all the spending previous generations are doing that Gen-X and Y will end up paying for.

Freep mail me to be added or dropped. See my home page for details and previous articles.  

19 posted on 07/30/2007 8:07:55 PM PDT by qam1 (There's been a huge party. All plates and the bottles are empty, all that's left is the bill to pay)
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To: Obie Wan
We the boomer generation have been the most TAXED generation in the friggin history of the country.

You bet. And they've come at us with every tax in the past 30 years. Ironic, they call the boomers lazy, stupid, greedy, spoiled etc, yet my non-boomer parents bought their first home in about 1951, it was brand new for like $4,000. Mom never had to work, and good ol Dad and Mom raised our entire family on one income..We had two cars, TV, campers, vacations, great affordable health insurance etc. I remember Dad going to the gas station and saying, "gimmie a bucks worth or regular".

My folks first home is still there, and I'd bet if purchased today, the first 3 months of mortgage payments would equal what they paid for the home in 1951.

20 posted on 07/30/2007 8:21:38 PM PDT by dragnet2
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To: B4Ranch

no they won’t. those of us who haved planned for and sacrificed for retirement will be taxed to support these low-life selfish jerks.


21 posted on 07/30/2007 8:27:26 PM PDT by bravo whiskey (everybody's shot. drive the truck)
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To: traumer

According to Nicholas Retsinas, the director of the Joint Center for Housing studies at Harvard, we need to allow million of illegal immigrants into our country each year because they will eventually pool their money together and buy the homes retiring boomers need to unload. Thus keeping housing prices going ever upward, home building industry growing (one of the biggest employers of illegal labor), and the boombers can retire well. Problem solved!!!


22 posted on 07/30/2007 8:31:38 PM PDT by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: traumer

I remember a statistic from the mid 1990s. It said the AVERAGE 50 year old had $2000 saved for retirement. I couldn’t believe it. That couldn’t be, could it? At the time, *I* had a lot more money than that in my 401K!

Then, after I switched jobs and moved around a bit, I began to realize that many of my co-workers fit this profile.


23 posted on 07/30/2007 8:33:09 PM PDT by gunservative
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To: B4Ranch

Agreed!


24 posted on 07/30/2007 8:33:40 PM PDT by stephenjohnbanker ( Hunter/Thompson/Thompson/Hunter in 08! "Read my lips....No new RINO's" !!)
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To: Proud_USA_Republican
we need to allow million of illegal immigrants into our country each year because they will eventually pool their money together and buy the homes retiring boomers need to unload.

If the illegal aliens will be purchasing all he boomers homes, where will all the boomers be living?

25 posted on 07/30/2007 8:35:21 PM PDT by dragnet2
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To: bikerMD

Guess what is now the most heavily funded area of big pharma?

Anti-Diabetes drug development.


26 posted on 07/30/2007 8:37:30 PM PDT by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: gunservative
I remember a statistic from the mid 1990s. It said the AVERAGE 50 year old had $2000 saved for retirement. I couldn’t believe it.

So they have no retirement pensions?

27 posted on 07/30/2007 8:37:47 PM PDT by dragnet2
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To: Obie Wan

Did you ever pay a 90% top marginal tax rate?


28 posted on 07/30/2007 8:38:32 PM PDT by Choose Ye This Day (Ask not what you can expect from life; ask what life expects from you. -- Viktor Frankl)
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To: Choose Ye This Day

I don’t know what the hell you are talking about HOWEVER I stand by my posting that we the Boomers are the most taxed generation in the history of this country !!!


29 posted on 07/30/2007 8:42:47 PM PDT by Obie Wan
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To: dragnet2

Downsizing to retirement condos in places like Florida and Arizona. That will leave them with a huge nest egg to continue their level of consumerism and lack of savings.


30 posted on 07/30/2007 8:45:11 PM PDT by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: Proud_USA_Republican

Yeah right genius,a hugh nest egg !!!


31 posted on 07/30/2007 8:48:50 PM PDT by Obie Wan
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To: traumer

My Brain: Many stinking lieberal regressive hippies are boomers. See a connection?


32 posted on 07/30/2007 8:49:18 PM PDT by vpintheak (Like a muddied spring or a polluted well is a righteous man who gives way to the wicked. Prov. 25:26)
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To: Proud_USA_Republican

Oh, so all the boomer retirees are moving to Florida and Arizona, and the illegal aliens will be purchasing all their homes in the rest of the country. Oh, OK.


33 posted on 07/30/2007 8:49:44 PM PDT by dragnet2
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To: traumer
NEW YORK (AP) -- Nearly one-third of baby boomers ages 51 to 61 are at risk of not having enough in savings to finance a comfortable retirement, according to ...

As usual, a giant argument is generated around an undefined word.

I notice no great effort is made to define "comfortable".

No mention, either, of the mortal blow to the Social Security System when welfare "Medicare" was attached to it.
Medical care is perhaps the biggest "sword of Damocles" retirees face. Medical care is now almost as inferior as the Canadian fiasco.

34 posted on 07/30/2007 8:49:57 PM PDT by Publius6961 (MSM: Israelis are killed by rockets; Lebanese are killed by Israelis.)
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To: Obie Wan

I agree with you, Obie.

We have been self-employed (solo architect) the last 35 years. Raised 4 children, with only one modest car. (Still only have one modest car!)

There were some really good years when we could afford to stash some away. They kept changing of the tax laws on us, and that, combined with the ups and downs of the construction industry), meant we could never keep what we had saved.

It all went to .gov! Remember, self-employed professionals get very few tax breaks for stuff like health insurance. When we lost the 5 year averaging, it really stung us!

I feel so sorry for the next generation. We will get blamed for the mess they inherit, but it really wasn’t us, but the fools in D.C.


35 posted on 07/30/2007 8:52:21 PM PDT by jacquej
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To: bravo whiskey
no they won’t. those of us who haved planned for and sacrificed for retirement will be taxed to support these low-life selfish jerks.

I can't believe that nobody remembers that Billy CLinton, the First Rapist instituted the first tax ever on Social freakin Security income!
That helps.

Just saying.

36 posted on 07/30/2007 8:54:22 PM PDT by Publius6961 (MSM: Israelis are killed by rockets; Lebanese are killed by Israelis.)
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To: gunservative

I work at a bank and blows my mind how soo many co-workers have 0 retirement savings or cashed out of whatever they had saved in retirement accounts to buy real estate recently.

I’m currently in my mid-30’s and have 100,000+ in my 401K. I have maxed out yearly contribution limits to it the past 5 years taking full advantage of my companies matching. I still get scarred I won’t have enough down the road to survive when I’m in my retirement years.

I’m investing right now with a mindset that I will receive 0 social security. If I do get any, it will be a little extra each month. There is no fricken way you will be able to live off of social security and nothing else.


37 posted on 07/30/2007 8:56:38 PM PDT by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: jacquej
I feel so sorry for the next generation. We will get blamed for the mess they inherit, but it really wasn’t us, but the fools in D.C.

You bet. Many of the younger people today haven't a chance. I see many of them never being able to afford a home, even with two incomes.

38 posted on 07/30/2007 8:57:43 PM PDT by dragnet2
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To: bravo whiskey

I don’t expect that everyone will be as fortunate as I am. My wife and I were both well paid during our working years. Sure we were frugal, saving for the kids college and our retirement but those who are broke and subsisting on SSI are just that, subsisting. That’s not what I would call living.


39 posted on 07/30/2007 8:58:29 PM PDT by B4Ranch ( "Freedom is not free, but don't worry the U.S. Marine Corps will pay most of your share.")
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To: Proud_USA_Republican

You have more than my wife and I had in our 30s. Keep saving and investing, you’ll do fine.


40 posted on 07/30/2007 9:00:39 PM PDT by B4Ranch ( "Freedom is not free, but don't worry the U.S. Marine Corps will pay most of your share.")
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To: Obie Wan

Selling your home for hundreds of thousands more than you were planning to does wonders for your HUGH nest egg.


41 posted on 07/30/2007 9:01:05 PM PDT by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: Choose Ye This Day

>Did you ever pay a 90% top marginal tax rate?<

Anybody who pays top rate isn’t doing much planning ahead.


42 posted on 07/30/2007 9:02:48 PM PDT by B4Ranch ( "Freedom is not free, but don't worry the U.S. Marine Corps will pay most of your share.")
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To: Proud_USA_Republican
Selling your home for hundreds of thousands more than you were planning to does wonders for your HUGH nest egg.

Hmmm...

So if the boomer sells his home in Indiana, and moves to Florida, he'll be able to buy that retirement home cash and have a HUGE nest egg?

43 posted on 07/30/2007 9:04:13 PM PDT by dragnet2
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To: Choose Ye This Day
Did you ever pay a 90% top marginal tax rate?

I remember that period. Companies were providing pension plans (read the article next time), everything was a tax write off, and there was no AMT. Thanks for the not so constructive hit and run.
44 posted on 07/30/2007 9:06:25 PM PDT by PA Engineer (Liberate America from the occupation media.)
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To: Proud_USA_Republican

Proud _USA_ Republican don’t cut it with me. What you are is a socialist idiot. You think everybody’s got a big house nestegg? you can shove it where your nestegg don’t shine !!!


45 posted on 07/30/2007 9:07:37 PM PDT by Obie Wan
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To: Incorrigible
Baby Boomer retirement plan: Tax their children!

Bravo Sierra. I am a boomer and have paid in the max rate for over 40 years. I would be more than happy to have no retirement if the government would just give my money back at a compounded rate of what the New York Composite Index returned over the last 40 years. I have also paid into 401ks and other plans. I will retire moderately comfortably. I will not retire in the manner that I could have it the government stayed the hell out of my retirement plan.

46 posted on 07/30/2007 9:08:59 PM PDT by cpdiii (Pharmacist, Pilot, Geologist, Oil Field Trash and proud of it.)
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To: dragnet2

In California, New York, New Jersey, and Florida, 20 percent of home buyers last year were new to this country. The top five surnames of home buyers in 2000 were: Smith, Johnson, Brown, Williams, and Miller. Five years later, Smith, Johnson, and Williams were still in the top five, joined by Garcia and Rodriguez. In California, in 2005, the top five surnames among home buyers were all Latino.

This trend will not just continue in the gateway cities, but will spread out into the rural areas as well.


47 posted on 07/30/2007 9:09:26 PM PDT by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: Proud_USA_Republican
Selling your home for hundreds of thousands more than you were planning to does wonders for your HUGH nest egg.

Hmmm...

So if the boomer sells his home in Indiana, and moves to Florida, he'll be able to buy that retirement home cash and have a HUGE nest egg?

But everyone doesn't live in California or New York..

What about everyone else?

48 posted on 07/30/2007 9:11:07 PM PDT by dragnet2
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To: dragnet2

He\she \it don’t know what they are talking about. They only know what their liberal little freak masters tell em to think !!!


49 posted on 07/30/2007 9:14:00 PM PDT by Obie Wan
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To: Obie Wan

I’m starting to wonder.


50 posted on 07/30/2007 9:17:08 PM PDT by dragnet2
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