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Baby Boom—Or
Bust?
They
grew up in prosperous times and lived life to the hilt...
but have baby boomers saved enough for retirement?
 In
the eighteen years between 1946 and 1964, over 78 million
babies were born in the United States. World War II had
been good for the American economy, pulling it out of
the Great Depression for good. During the “fabulous
50s,” unprecedented industrial growth provided steady
employment and rising incomes. The four-child family became
the ideal, along with a house in the suburbs, two cars
in the driveway, and that wonderful new invention, the
television, in the living room. One-income families were
the norm—and for the middle class at least, one paycheck
was enough to supply families with an increasing number
of luxuries and new experiences.
While
many boomers have invested wisely for retirement, the
majority have just not saved enough. There have been incredible
social and economic changes since the 1950s, when boomers
grew up with an innocent confidence that life could only
get better. Unlike their fathers, who were likely to stay
with one company and draw a sizable pension, many boomers
have job-hopped—sometimes out of boredom or a desire
to find work that would make them happy, and sometimes
because of mergers, layoffs, outsourcing, and early-retirement
buyouts.
Skyrocketing
housing, education, and healthcare costs have depleted
retirement nest eggs as boomers have found themselves
sandwiched between college expenses for their children
and care for their elderly parents. The increased frequency
of divorce has also left many boomers with much less in
their IRAs and 401Ks than they thought they would have.
Then there are those who have put aside nothing at all.
Perhaps they followed the advice in the popular 70s song
“Cast Your Fate to the Wind.” Or perhaps they
lived paycheck to paycheck and simply never had anything
to save.
Financing
Retirement: How Much Will You Need?
In
2008, the oldest of those 78 million boomers will turn
62 and will qualify for reduced-rate social security payments.
In the decades that follow, more and more will qualify.
As most people know, social security replaces only about
40% of pre-retirement income. Investment advisors suggest
that retirees will need 60-80% of their pre-retirement
income in order to maintain a comparable lifestyle. But
that assumes that their expenses will decrease—that
retirees will simply put themselves on austerity budgets
and make up the shortfall. Unfortunately, even if they
want to be more frugal, it won’t be easy. Supplemental
Medicare policies and long-term care insurance are new
expenses retirees must absorb, and property taxes, home
and auto insurance, energy costs, and food expenses will
all continue to rise.
 The
Worst That Could Happen...
Boomers’ biggest fear is that a healthcare crisis
will use up funds they’ve set aside for retirement.
Medical advances allow people to live much longer than
in the past, but their quality of life is often not the
best, and spending for prescriptions that prolong life
is through the ceiling. Boomers are worried about living
out their final years in an unpleasant but expensive nursing
home, or having to ask their children for help. This fear
is another factor that fuels the desire to accumulate
just a little bit more money and take less from retirement
nest eggs so they’ll be able to grow and the funds
will be available when work is no longer an option.
How
will boomers find needed funds in retirement?
An
Associated Press survey reported that the majority of
boomers hope to retire from their current jobs at around
age 63. However, 66 percent anticipate they will work
for pay after retiring. Twenty-seven percent will continue
to work out of financial necessity, 43 percent because
they can’t picture “sitting around doing nothing,”
and 19 percent so that they will have money available
for extras they could not afford on their retirement income.
The
majority of boomers foresee neither full-time leisure
nor full-time retirement, but a combination of both. With
30 years of retirement a real possibility, they are looking
for challenges, not rocking chairs. Some plan to launch
new careers or use their skills as volunteers. Others
say they will go back to school, start their own businesses,
or try to turn a profit from a hobby.
Are You a “Wealth Builder”—or “Stretched
and Stressed”?
In
The New Retirement Survey, Harris Interactive®
and Age Wave questioned a diverse population and identified
five different types of soon-to-be retiring boomers: the
"Empowered Trailblazers," the "Wealth-Builders,"
the "Leisure Lifers," the "Anxious Idealists"
and the "Stretched and Stressed."
- About 18%
were “Empowered Trailblazers,” people who
look forward to retirement because they see it as
a progression to another phase of life. About 90%
in this group plan to work some after retirement,
but they will also be busy with travel, volunteering,
taking or teaching classes, and generally enjoying
anything new that comes along.
- “Wealth
Builders” (20%) are looking for more financial
security for themselves and their families, and money
is the main reason 79% will continue to work after
official retirement.
- “Anxious
Idealists” (13%) worry that they do not have
enough money to retire, especially since they want
to leave an inheritance for their children and a legacy
to charitable organizations.
- “Leisure
Lifers” (13%) just want to relax. They’re
sick of work, probably never liked their jobs, and
definitely don’t want to work after retirement.
They had low income levels and did not save enough,
but they figure “someone will do something”
to help them if they get into trouble.
- The “Stretched
and Stressed” (18%) are well aware that they
have not saved enough for retirement. They will work
because they have to, but they don’t look forward
to it. This group is the least optimistic.
 You
have an 82% chance of identifying with a group that feels
it needs more money for retirement. With the economy in
constant fluctuation and costs of necessities rising steadily,
it’s no wonder that most people fall into the “I
need more money” category. Peace of mind means knowing
not merely that you will somehow be able to survive, but
that you’ll have the funds to allow you to enjoy
the happy retirement envisioned by the “Empowered
Trailblazers.”
YOU
Control Your Future.
Fortunately,
no matter how old you are right now, it is very possible
to become a “Wealth Builder.” This doesn’t
mean you have to become a workaholic or even keep working
full time. Instead, you can build an income generator
that will provide funds for you to invest now and to fund
your retirement for many years into the future. And you
can do it in the privacy and comfort of your own home,
or even from your RV or vacation hotel. As long as you
have Internet access and a telephone, you can build a
successful business that will quickly transport you from
a state of anxiety and pessimism about retirement to one
of financial confidence and security—ready to enjoy
the rest of your life in a style you may never have imagined
possible.
Is there still time? Absolutely. Obviously, the sooner
you get started, the better.
A
team of skilled business professionals is ready to take
you through the steps of building a home business that
can free you from worrying about the future. If you are
ready to take control and secure your financial future,
you’ve come to the right place.
Simply
fill out the form below for additional information.
Bret Anderson
800-676-9238
Email
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