Are you a Baby Boomer thinking about retirement? Do you think you might have to work most of your retirement years? Unfortunately, this is something Baby Boomers are thinking a lot about these days, and the news is not very good. It was something we never envisioned years ago, but the sad truth is, it’s a reality many of us are facing. Many surveys are done, and they show that most Baby Boomers have saved very little for their retirement.
The biggest majority will depend solely on Social Security. The average Social Security payment, per month, is $1300.00 and on this day and in this age of ongoing rising prices, that will not be near enough. There is no way the Federal Government can continue making Social Security payments when you factor in the fact that they are collecting just about what they are paying out now.
A Short History
Most of us are very much aware of how clumsy we were in preparing for our retirement. A lot of baby boomers thought Social Security was going to be plenty, we were thinking about .35 cent gas and not $2.50. My first house cost $16,000, and I can remember the advertisement for a new Mustang costing under $3.,000 – most baby boomers did not think ahead.
For whatever the reason, baby boomers did not pay attention to their parents. There is a lot more information out now about the necessity of saving for retirement, at least it seems to me, it is talked about more now, then it was. It could be that I am paying more attention now than I did years ago.
It could also be the popularity of the love generation of the 60s and 70s, where everyone thought we could live together and everyone would take care of the other. Well, all that was tried and fell apart in disaster! Younger people in the middle class and lower classes, always have a hard time saving any money.
I listened to a lot of people, trying to emphasize the importance of saving money and saving for retirement, but for whatever reason, I failed to heed. My Father always said, “if you start out saving $10 per month now, by the time your 65 you’ll be a millionaire”. I don’t know if I would have that much, but I would be a lot closer.
Baby Boomers are turning 65 at a pace of 10,000 per day.
- 37% of all Baby Boomers have less the $50,000 for retirement
- 13% have between $50,000 and $100,000
- 14% have between $100,000 and $200,000
- 12% have between $200,000 and $300,000
- 9% have between $300,000 and $500,000
These numbers suggest that a significant number could end up struggling to pay bills in their retirement.
Millennials to the World
Millennials seem to be doing better than their Baby Boomer parents, at least on the surface. Sixteen percent now have $100,000 or more in savings. On the other side of the coin, nearly half haven’t started saving for retirement, but 63% save toward lifestyle goals. The majority of these young people are more likely to spend their money on travel, dining, or fitness, instead of collecting for the long term.
Millennials are saving 36% more than their elders and putting more aside, but they keep more for the short term. With all the reports about the $20 trillion government debt and how Social Security being broke by 2034, millennials are focused on what they feel is realistic. When the unexpected happens, many do not have the confidence in their ability to succeed with financial goals.
With all the misinformation and all the fabricated news stories going around these days, millennials and a lot of others think, why not spend it now? Isn’t this similar to what Baby Boomers thought in the 60s?
Troubled Social Programs
When you add all entitlement programs, social security, and all other federal government liabilities (Medicaid, food stamps, social security disability, student loan debt), they total close to $53 trillion. The federal government has written a blank check for all Social Programs.
During the Great Depression, President Roosevelt and his committee on Economic Security came up with the Social Security plan. It was a grand plan in which the government would start collecting a small payroll tax from the people, to put into a trust fund for people to receive when they reached age 65. In 1937 the fee to be collected was one percent of a workers’ salary, to be put into this fund. You can see it has risen considerably.
Everyone knows, the politicians could not leave the Trust Fund alone. The program will run an overall surplus through the end of 2019 and by 2034 the Trust Fund is expected to be exhausted. After that, payroll taxes are projected to only cover 79% of program obligations.
Wake Up Baby Boomers
I have a pretty good idea what I am going to do and, know what I am not going to do. Is the only solution work to age 70 or try to transition into part-time. Do you want to be a greeter at Wal-Mart or drive a Lyft taxi? Not that I would mind, it’s not hard work, and you can meet all kinds of new people. But it’s not good news for the love generation!
People assume their employers will let them transition into part-time and they assume they will stay healthy long enough to keep working. Research has shown that only 5% of employers offer a phased-in retirement program and few employees are offered part-time jobs.
All of you well know, that if you should get a part-time position, very few if any benefits are offered. Everyone knows age discrimination is pervasive in the workplace and if you are between 55 and 65, it takes twice as long to find a job, as it would in your younger days.
I had to take early retirement due to health reason, been retired about two years now. My wife and I both take care of our Senior parent, her Dad and me, my Mom. It is something we both want to do. They got us started in this world, the least we can do is try to bring a little happiness into their lives, in their final days.
In my early years, I was very interested in how computers worked and what makes the Internet what it is and always searching for something to make some money in my retirement years. I was your typical Baby Boomer, don’t have enough for retirement.
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