How are your plans for retirement? Or, if you’ve retired already, how are things going?
Previous studies have shown that about 33 percent of boomers were ill prepared for retirement.
However, a new study pegs the number much higher.
In a study by the McKinsey Global Institute that examined the saving behavior of different generations, the savings patterns of boomers is less than that of the Matures, born from 1925 to 1944. The institute is an economics research company.
Boomers have saved less because they carry far more debt than other generations, according to an article in The Wall Street Journal, “Spendthrift Boomers Face Perilous Retirement: McKinsey,” which reported on the study. Credit cards and mortgages account for the boomer debt.
It looks like two-thirds of boomers aren’t prepared for retirement, which the McKinsey report defines as being able to have 80 percent of their preretirement spending as they grow older.
What to do?
The report recommends boomers work longer. The number of unprepared households would be cut in half by 2015 if the median age of retirement would increase two years, from today’s rate of 62.6 to 64.
Another article on the report, “Did Boomers Enjoy the Boom a Little Too Much?,” appeared in The Washington Post.
Studies are done year by year, and people can’t rely on studies that are at least a year old because a lot of changes can happen within a year. The trends and economy also change. Change is the only thing constant in this world.
I don’t agree. This study points out a new trend, more baby boomers aren’t prepared for retirement.
In this sluggish economy, this trend continues.
Rita