Why Boomers Aren't Saving for Retirement
Posted: May 25, 2012 at 2:24 pm
"The Boomer is a column written for adults nearing retirement age and those already in their golden years. It will also promote reader interaction by posting e-mail responses and answering reader questions. E-mail your questions or topic ideas to thefoxboomer@gmail.com.
Heres a scary statistic: About 49% of Americans say they aren't contributing to any retirement fund.
A new survey conducted by LIMRA, a trade association for the financial services industry, shows less than a third of Americans over age 50 worked with a financial professional to plan for retirement.
"The findings from this survey were disturbing, given that people will increasingly need to rely on their personal savings to make ends meet in retirement," says Matthew Drinkwater, associate managing director at LIMRA's retirement research division, in a statement.
Boomers need to take a more proactive role when it comes to their retirement and making sure they have adequate savings to cover their needs. Saving systematically can have a dramatic impact on boomers lifestyles after they leave the workforce.
The survey asked consumers what investment vehicles they were using to save for their retirement (when they were) and according to Drinkwater, only 45% of respondents in their 50s were contributing to a defined contribution plan, while 16% were contributing to a ROTH and 20% to a traditional IRA. Heres the more-troubling stat: Drinkwater says a survey conducted earlier this year showed 29% of those 55 or older reported being confident they were saving enough money to last through retirement.
So what gives? If boomers arent saving for retirement because they dont have enough funds leftover after covering daily expenses like food, housing, gas and putting kids through college, how do they feel like they will have enough savings for retirement? Well, many dont plan to ever retire fully or will delay leaving the workforce.
Although it may make sense to at least plan to work as long as you can, says Drinkwater, I don't think many people are going to be able to do that into their 70s and 80s. That is not really the solution. If you look at current retirees, a lot of them say that they retired earlier than expected.
He cited a two-year old survey that showed 38% of respondents retired when they planned to, with 56% saying they retired earlier than anticipated. Of that 56%, close to half had to leave involuntarily. The mindset of I dont have to save as much because I plan to work longer is risky.
You may need to think again because you may be jeopardizing your retirement security because you may have to make those dollars last longer than you had planned for.
Go here to read the rest:
Why Boomers Aren't Saving for Retirement
- Pope OK's Indy archbishop's retirement [Last Updated On: September 22nd, 2011] [Originally Added On: September 22nd, 2011]
- Shoaib Akhtar announces retirement [Last Updated On: September 23rd, 2011] [Originally Added On: September 23rd, 2011]
- William Regal Announces his retirement [Last Updated On: September 23rd, 2011] [Originally Added On: September 23rd, 2011]
- Shaq Announces Retirement, Will Miss Free Throws [Last Updated On: September 24th, 2011] [Originally Added On: September 24th, 2011]
- Elena Dementieva Announces Career Retirement [Last Updated On: September 24th, 2011] [Originally Added On: September 24th, 2011]
- 1st and 10 discuss Randy Moss retirement and legacy [Last Updated On: September 24th, 2011] [Originally Added On: September 24th, 2011]
- American Retirement - French and Saunders [Last Updated On: September 25th, 2011] [Originally Added On: September 25th, 2011]
- Planning Your Retirement [Last Updated On: September 25th, 2011] [Originally Added On: September 25th, 2011]
- Shaquille O'Neal Retirement Press Conference (6/3/11) [Last Updated On: September 26th, 2011] [Originally Added On: September 26th, 2011]
- Shahid Afridi Announced His Retirement [Last Updated On: September 26th, 2011] [Originally Added On: September 26th, 2011]
- NHL: Mike Modano Announces Retirement [Last Updated On: September 26th, 2011] [Originally Added On: September 26th, 2011]
- REALIST NEWS - Pentagon to cut veteran retirement program? [Last Updated On: September 26th, 2011] [Originally Added On: September 26th, 2011]
- Joe Montana Retirement [Last Updated On: September 28th, 2011] [Originally Added On: September 28th, 2011]
- Fire Chief Rick Lasky's Retirement Video - City Of Lewisville [Last Updated On: September 30th, 2011] [Originally Added On: September 30th, 2011]
- Bob's retirement celebration [Last Updated On: September 30th, 2011] [Originally Added On: September 30th, 2011]
- Smackdown vs Raw 2011 - Edge Retirement Tribute [Last Updated On: October 1st, 2011] [Originally Added On: October 1st, 2011]
- ★ Assassins Creed Revelations - Original Music "Assassin's Retirement Home" ft. TGG - TGN [Last Updated On: October 2nd, 2011] [Originally Added On: October 2nd, 2011]
- Ronaldo's Goodbye Part 1 - Retirement Announcement (with English subtitles) [Last Updated On: October 4th, 2011] [Originally Added On: October 4th, 2011]
- West Palm Beach Police Chief Announces Retirement [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- Ben Stein Talks Retirement -- Part 1 [Last Updated On: October 6th, 2011] [Originally Added On: October 6th, 2011]
- Old Age Perils: Retirement made bleak in UK by rising costs [Last Updated On: October 6th, 2011] [Originally Added On: October 6th, 2011]
- Edge discusses retirement two weeks before being forced to retire [Last Updated On: October 7th, 2011] [Originally Added On: October 7th, 2011]
- Shaquille O'Neal Retirement Mix (All Of The Lights) [Last Updated On: October 8th, 2011] [Originally Added On: October 8th, 2011]
- Stock market impact on retirement [Last Updated On: October 9th, 2011] [Originally Added On: October 9th, 2011]
- Retirement Jock Jeff Thompson-Estate Planning Life Insurance Strategies [Last Updated On: October 10th, 2011] [Originally Added On: October 10th, 2011]
- Baby Boomers Retiring in Texas [Last Updated On: October 10th, 2011] [Originally Added On: October 10th, 2011]
- Hulk Hogan Announces His Retirement From Wrestling [Last Updated On: October 12th, 2011] [Originally Added On: October 12th, 2011]
- First Draft of Yao Ming's Retirement Speech [Last Updated On: October 13th, 2011] [Originally Added On: October 13th, 2011]
- Uncut: Shaq Retires - Video [Last Updated On: October 16th, 2011] [Originally Added On: October 16th, 2011]
- Farewell Discovery: Space shuttle's last landing before retirement - Video [Last Updated On: October 16th, 2011] [Originally Added On: October 16th, 2011]
- Yao Ming Retirement Speech (FULL) - Video [Last Updated On: October 17th, 2011] [Originally Added On: October 17th, 2011]
- Shaquille O'Neal Retirement Press Conference 6/3/11 - Video [Last Updated On: October 18th, 2011] [Originally Added On: October 18th, 2011]
- Tyler Seguin - Harvard Lampoon retirement skit - Video [Last Updated On: October 19th, 2011] [Originally Added On: October 19th, 2011]
- iPHONING MY WAY TO RETIREMENT $.70 AT A TIME by Eugene Lin, Ep 44 - Video [Last Updated On: October 19th, 2011] [Originally Added On: October 19th, 2011]
- Dilbert Animated Cartoons - Confidential Information, Retirement Planning and Visionary Leadership - Video [Last Updated On: October 22nd, 2011] [Originally Added On: October 22nd, 2011]
- Steve McNair Retirement Speech - Video [Last Updated On: October 23rd, 2011] [Originally Added On: October 23rd, 2011]
- Mark Recchi announces retirement after Cup win 6/15/11 - Video [Last Updated On: October 25th, 2011] [Originally Added On: October 25th, 2011]
- Tax-Saving Tips - Retirement Savings - Video [Last Updated On: October 26th, 2011] [Originally Added On: October 26th, 2011]
- When elephants retire - Video [Last Updated On: October 26th, 2011] [Originally Added On: October 26th, 2011]
- BayPort Credit Union: Retirement - Video [Last Updated On: October 28th, 2011] [Originally Added On: October 28th, 2011]
- Randy Couture Talks Machida Kick, Retirement - Video [Last Updated On: October 31st, 2011] [Originally Added On: October 31st, 2011]
- Raw: Edge reveals that he must retire from competition - Video [Last Updated On: October 31st, 2011] [Originally Added On: October 31st, 2011]
- Shaquille O'Neal Boston Celtics Highlight Reel (Retirement Mix) - Video [Last Updated On: November 2nd, 2011] [Originally Added On: November 2nd, 2011]
- Social Security vs. Private Retirement Accounts - Video [Last Updated On: November 3rd, 2011] [Originally Added On: November 3rd, 2011]
- Roy Nelson on Retiring Cro Cop at UFC 137, Eating Well + Steven Seagal Movies - Video [Last Updated On: November 6th, 2011] [Originally Added On: November 6th, 2011]
- FedEx Express Ad: Retirement - Video [Last Updated On: November 6th, 2011] [Originally Added On: November 6th, 2011]
- Mirko Cro Cop Talks Retirement - Video [Last Updated On: November 7th, 2011] [Originally Added On: November 7th, 2011]
- MLB - Tony La Russa Announces Retirement - Video [Last Updated On: November 8th, 2011] [Originally Added On: November 8th, 2011]
- Make your retirement fund recession-proof - Video [Last Updated On: November 10th, 2011] [Originally Added On: November 10th, 2011]
- Curtis Joseph Retirement Press Conference - Video [Last Updated On: November 13th, 2011] [Originally Added On: November 13th, 2011]
- Joe Paterno Retirement -- Is it Fair? -- UPDATE: Paterno FIRED - Video [Last Updated On: November 15th, 2011] [Originally Added On: November 15th, 2011]
- Finance Friday: How to Protect Your Retirement Date from a Market Decline - Video [Last Updated On: November 19th, 2011] [Originally Added On: November 19th, 2011]
- Best Of Shaq - Retirement Press Conference - Video [Last Updated On: November 19th, 2011] [Originally Added On: November 19th, 2011]
- Lampard and Becks on why Heskey's retirement is great news! - Video [Last Updated On: November 21st, 2011] [Originally Added On: November 21st, 2011]
- Brad Pitt interview: Retirement is on the way - Video [Last Updated On: November 22nd, 2011] [Originally Added On: November 22nd, 2011]
- Bill Gates' spoof retirement video - Video [Last Updated On: November 22nd, 2011] [Originally Added On: November 22nd, 2011]
- Retirement village purchase arrangements.m4v - Video [Last Updated On: November 26th, 2011] [Originally Added On: November 26th, 2011]
- What is a retirement village? - Video [Last Updated On: November 26th, 2011] [Originally Added On: November 26th, 2011]
- Retired CIA Officer Ray McGovern: Israel - The Elephant in The Room 1/3 - Video [Last Updated On: November 27th, 2011] [Originally Added On: November 27th, 2011]
- UNCUT: Frank Retirement News Conference - Video [Last Updated On: November 29th, 2011] [Originally Added On: November 29th, 2011]
- Retirement - Kaiser Chiefs - Video [Last Updated On: November 29th, 2011] [Originally Added On: November 29th, 2011]
- Peter Forsberg Jersey Retirement - Full Ceremony - HD [Part 2/3] - Video [Last Updated On: November 30th, 2011] [Originally Added On: November 30th, 2011]
- Alonzo Mourning Gets #33 Retired in Miami - Video [Last Updated On: December 1st, 2011] [Originally Added On: December 1st, 2011]
- Hulk Hogan's Retirement Takes A Shocking Turn - Video [Last Updated On: December 2nd, 2011] [Originally Added On: December 2nd, 2011]
- NewsRadio - Retirement - Video [Last Updated On: December 3rd, 2011] [Originally Added On: December 3rd, 2011]
- Frank's Retirement Flight in HD - Video [Last Updated On: December 4th, 2011] [Originally Added On: December 4th, 2011]
- NBA 2K12 My Player Retired - Video [Last Updated On: December 9th, 2011] [Originally Added On: December 9th, 2011]
- What Financial Firms don't Get About Retirement - Video [Last Updated On: December 11th, 2011] [Originally Added On: December 11th, 2011]
- Minecraft Tutorials - Tutorial World "Retirement Tour" - Video [Last Updated On: December 12th, 2011] [Originally Added On: December 12th, 2011]
- Retirement in Ecuador - Video [Last Updated On: December 13th, 2011] [Originally Added On: December 13th, 2011]
- UFC 135: Matt Hughes on Retirement + Koscheck (Pre-Fight Intv w/ Workout) - Video [Last Updated On: December 13th, 2011] [Originally Added On: December 13th, 2011]
- A retiring professor - Video [Last Updated On: December 15th, 2011] [Originally Added On: December 15th, 2011]
- Shaq's Retirement Speech -Funny- - Video [Last Updated On: December 19th, 2011] [Originally Added On: December 19th, 2011]
- Recession snatches retirement from America's workers - Video [Last Updated On: December 22nd, 2011] [Originally Added On: December 22nd, 2011]
- 5 Forbes Tips On How To Make Money During Retirement - Video [Last Updated On: December 24th, 2011] [Originally Added On: December 24th, 2011]
- Forrest Griffin Interview: Tito Ortiz, Ultimate Fighter, Retirement - Video [Last Updated On: December 25th, 2011] [Originally Added On: December 25th, 2011]
- Expert Investors On Saving For Retirement (Intelligent Investing With Steve Forbes) - Video [Last Updated On: December 25th, 2011] [Originally Added On: December 25th, 2011]
- BJ Penn on Diaz v. GSP, Retirement- INSIDE MMA Exclusive - Video [Last Updated On: December 29th, 2011] [Originally Added On: December 29th, 2011]
- Miyamoto's "Retirement", Kingdoms of Amalur Impressions, and Chrome Gaming! - Video [Last Updated On: January 1st, 2012] [Originally Added On: January 1st, 2012]
- SHAQ Announces Retirement - Video [Last Updated On: January 3rd, 2012] [Originally Added On: January 3rd, 2012]