The numbers from the first group of baby boomers to retire are worse than had been anticipated.
Wells Fargo just released a new survey that has some very disturbing results.
- 34% of retired baby boomers now realize they will have to work until 80 years of age.
- 59% of them say their No. 1 priority is not a comfortable retirement, it’s just paying the bills each month.
- 48% do not think they will have a comfortable retirement.
Most people between the ages 40 and 59 believe $200,000 is the number they will need in savings to retire.
According to the study, the average person has saved about one-tenth that amount.
And even if the majority hit the $200,000 mark, it will produce only about $8,000 in annual income.
The days of steady 7% returns from money markets and savings is long gone.
The good news is there is still time for a fix for those in their 40s and 50s. Most of the ideas to save your retirement are old hat. You’ve heard them before.
Delay taking your Social Security until the latest possible date. It will significantly increase your monthly income.
Fully fund your 401(k) and IRA, or at least as much as possible.
But there were two ideas in this report that are very new.
First, reduce the level of risk in your portfolio. Plan on more stable and predictable long-term returns.
And second, write down your planned retirement date and how much you need to make that date.
Now, reducing risk should be obvious to everyone. Simply writing down your retirement date and amount needed may seem too simple, but it is far more planning than most have done.
It’s time to get serious about funding your retirement, or you’re not going to have one.