Baby Boomers are facing an uncertain financial future, and most don't even realize it. With the lowest savings rate in history, lax investment habits and no guaranteed pensions, 80% of boomers lack sufficient assets to maintain their current standards of living with financial security late in life.
Even under the most optimistic projections, boomers with less than 10 years to retirement have simply run out of time.
A boomer could need $1 million of additional assets to produce the $50,000-per-year of distributions that are needed to maintain his or her lifestyle, explained Jack Waymire, who authored the best-selling "Who's Watching Your Money: The 17 Paladin Principles for Selecting a Financial Advisor."
"Baby Boomers are turning 60, and the vast majority of them are facing uncertain financial futures," says Waymire. "It is well past time to start thinking about retirement."
Boomers have passed the time for saving, although savings make assets grow faster. Instead, financial advisers say they now need to focus on performance, which is the key variable to a comfortable lifestyle for the rest of their lives.
Source: Ayinde O. Chase, All Headline News, Nov. 17, 2005