Baby Boomers’ Retirement Concerns Grow

Sep 20th, 2010 | By Sharon Shaw Elrod MSW EdD | Category: Senior Finances

The current recession is affecting Baby Boomers and retirees in difficult and somewhat challenging ways.  For those BBs who had planned to retire at 62 or 65, the plan for many has to be re-examined.  Using online retirement calculators helps determine whether or not a BB can afford to retire; many are discovering they cannot.  And many states are rolling back their retirement benefits to try to stem the retirement tide caused by Baby Boomers reaching 62-65.  Most agree BBs  were born between 1946 and 1960.

In West Virginia, lawmakers are reaching out to a variety of helpful resources to try to address the issues of BBs medical insurance should they choose to retire before 65 when Medicare kicks in.  They are appealing to state employees to stay on the job until age 65 so the state doesn’t have to fund their medical insurance.


Nineteen states, including New Jersey, Wyoming and Rhode Island, have rolled back pension benefits or seriously considered doing so, both for new hires as well as current employees and retirees.  Almost all 50 states are experiencing severe budget deficits and look at every program receiving state funds to try to address their budget issues, including services for retirees.  Baby Boomers considering retirement find these maneuvers daunting.

What to do?  For sure, this is no time to try to figure out the best options on your own.  If you do not have a financial advisor, get one.  Talk with friends and family and find out who their financial advisors are; check with your bank and get their recommendations; talk with a trusted attorney and learn what she/he says about financial advisors.  Then, there are several more considerations to think about:

  • Take a good look at your lifestyle and identify what you are willing to change or eliminate when you are no longer earning a wage; most retirees make several lifestyle changes when they retire and each needs to determine on her/his own what those changes will be;
  • Create a budget for your first five retirement years; include a category for emergencies that cannot be predicted; take this information when you visit your financial advisor and review it to be sure you haven’t left anything out;
  • Take the advice of experts and be prepared to put 18 months of expenses in a liquid savings account;
  • Idenify all sources of retirement income, including Social Security (http://www.ssa.gov); the web site has unlimited resources for retirement planning and SCJ recommends it without question; you can request a printout of your estimated Social Security benefit at age 62 and 65 and beyond;
  • Use a retirement calculator and print out the results;
  • Take all this information with you to talk with a financial advisor;

You will have a good idea if and when you can retire after looking carefully at these factors and discussing them with your financial advisor.  Information is power; make sure your information is accurate!



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  1. [...] Originally posted here: Baby Boomers Retirement Concerns Grow | Senior Citizen Journal [...]

  2. [...] Baby Boomers Retirement Concerns Grow | Senior Citizen Journal [...]

  3. Sharon,
    you are giving a clear description of the financial difficulties many retirees and soon to be retirees are facing. One solution is what your describe, work longer and adjust life style. Another solution may be of interest to some professionals and executives, and that is to leverage their know-how and life experience by starting their own business. With the rise of the internet, the individual now has marketing opportunities that were before out of reach. Maybe we can learn here from the movement of Global Entrepreneurship.
    Sincerely
    Kai
    http://kaidruhl.com/

  4. [...] the original article Baby Boomers’ Retirement Concerns Grow [...]

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