Skip: Hello, Mellody!
Mellody: Good morning, Skip!
Skip: Today is our final segment in our retirement series!
Mellody: It is. In the previous 3 weeks we have looked at how millennials and Gen X are doing when it comes to preparing for retirement. We also talked about the President’s new program – myRA – that creates a mechanism for people to save if they do not have an employee sponsored retirement plan, or if they are not able to contribute large sums. Today in the final piece, we will take a look at those who are staring retirement in the face to see how they are faring.
Skip: How do boomers view their current preparations?
Mellody: Last week I mentioned that Generation X was most clear-eyed about what they need for retirement, and behind when it comes to actually savings for retirement. Boomers are different. The baby boomers are the generation where expectations and reality do not always line up, and who can have a tendency to see their retirement prospects through rose-tinted glasses. Like GenX, boomers are realistic when it comes to having to work in retirement, with 60% of them saying they expect to keep working at least part-time after they “retire.”
And boomers and GenX agree when it comes to the changing notion of retirement, 82% of boomers and Generation Xers saying that a traditional retirement is a romantic fantasy of the past. But, there are some disturbing statistics as well. Numerous surveys found that boomers dramatically underestimate what they need to save for retirement, even as an astounding 65 percent of boomers said they “just have this feeling that everything’s going to work out” in retirement.
Skip: How are they doing in terms of preparation?
Money Mondays: Are Baby Boomers Financially Prepared For Retirement? was originally published on blackamericaweb.com