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Baby Boomer’s Savings are not Enough for Retirement, contributor Michael R. Burns

Thu, Aug 23, 2012

Home, Lifestyle, Money

The Center for Retirement Research at Boston College recently published a report, National Retirement Risk Index:  How Much Longer Do We Need To Work?  You can find a copy of the report at http://crr.bc.edu .  The report studies the amount of risk American households have of being unable to maintain their pre-retirement standard of living at various ages. 

Their studies conclude that 70% of American households are at risk of running out of money if they retired at age 62, the first year that you can file for Social Security.   However, if these households continued to work until age 66, the percentage at risk of running out of money would fall to 45%.  And if these households continued to work until age 70, only 14% would be at risk for running out of money.

These statistics strikingly point out the fact that most households should continue working until at least 70 years of age.  The extra years of income will grow your IRA, your 401(k) and any other investments that you can make.

In my book, The Boomer’s Guide to Recovering Your Lost Retirement:  The Bill Fisher Story, my father-in-law, Bill Fisher, didn’t start investing until he was 72 years old and within 18 years, he had accumulated a net worth of one million dollars.  He continued to work at his regular job until he was 84. 

You don’t have to work until you are 84, but I would recommend rethinking early retirement.  In addition, working keeps you active mentally and you get the stimulation of one’s peers.  Working can also be fun!  You can find out more about Bill Fisher’s investment strategies at www.theboomersguides.com .

 

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