Looking toward Retirement
Unlike previous generations, many Baby Boomers are concerned that they may not be able to depend on their Social Security benefits for retirement income in an unpredictable economic climate. Further, many employed Boomers may not have or contribute to employer-funded retirement plans. Following the shift that has occurred in recent decades whereby employees, rather than employers, generally assume full responsibility for funding their retirement plans, it’s not surprising that many Boomers are planning to remain in their jobs longer.
How do you determine if your savings and assets will sufficiently fund your retirement years? Here are some areas to estimate and analyze to get a clearer picture of where you stand:
- Potential income sources (e.g., income-producing real estate, inheritances, etc.)
- Projected balances of retirement and savings plans
- Costs of future health care needs
- Annualized rate of inflation over retirement years
- Amount of Social Security income to be received
- Percentage of present income required during retirement years
- Length of years retirement may last or life expectancy.
As is true for every generation facing the retirement planning process, Baby Boomers need a disciplined savings program in place. With a commitment to save as much as possible and a scheduled plan, you can work toward building the necessary retirement funds to secure your own financial future. Be sure to consult a qualified financial professional about your unique circumstances.