Baby Boomers are Not Saving Enough for Retirement

Posted by Lily Chung

The baby boomer group is one of the largest generations as well as the most prosperous in U.S. history. One of the biggest concerns is that baby boomers are not saving enough for retirement and this can be seen through a study done by MetLife. Studies show that 46% of the older baby boomers and 57% of the younger baby boomers have not saved enough for retirement. With changes in the financial environment, you have to be older than 65 to collect full social security benefits and lower interest rates will surely affect their investments. About two thirds of the older boomers are still in the work force and the longer they remain in the work force without collecting their social security benefits will increase it by several percent. So one of the biggest advice anyone can receive is to delay claiming your social security benefits as long as possible. The study done by MetLife also shows that the older group of baby boomers is delaying both social security and retirement, especially because of economic situations that have impacted their retirement savings. Due to the financial troubles the economy is having, younger generations have more of an advantage of saving for retirement.

Sources:
Retirement Planning: All God's Children Still Not Saving Enough
Boomers aren’t saving enough for retirement
The Retirement Prospects of the Baby Boomers

Get Your Finances Ready for Retirement

Posted by Lily Chung

Retirement Tips for Women

Posted by Lily Chung

On average, women work fewer years than men and they make $300,000 less than men, but over a lifetime, women live six years longer than the average man. For every $1 earned by men, women earn an average of $0.77. Preparing for retirement in the early stages may be the best decision a woman can make.

That is one of the first tips experts give to women. Start early. First you should figure out how much you would need in order to retire comfortably. You can do this by going to professionals that know how to work a "retirement calculator". After you figure that out, make sure you have a savings plan! You can get one through an IRA, TSP or employer-sponsored plan. But try to diversify your investings. Start investing assets in stocks, bonds and some in cash savings account. The best thing to do now is to keep your job and build up your assets. You need to be able to have a source to contribute to a 401(k) and no matter what you do, try your best NOT to borrow or take withdrawals from a 401(k). Try your best just to NOT touch anything that you have saved for retirement!

Another tip many experts would suggest is to retire later. Wait on social security if possible. When you claim your social security earlier, there is a huge difference in the benefits. Reports have shown that someone who claimed their social security at the age of 62, claimed about 50% less than someone who claimed their social security at the age of 67.

Sources:
Top Ten Retirement Tips For Women
5 Retirement Tips...For Women Only
Retirement Tips for Women

How Social Security Reform Affects Women

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"There is broad, deep opposition among women to any reforms that would weaken Social Security and undermine their retirement security," said National Partnership President Debra L. Ness. "Women want lawmakers to ensure that they will get the benefits they are paying for-not privatize the system."

The poll also found that when told that private accounts would reduce Social Security's guaranteed monthly benefit, women's support for privatization drops to just 33 percent.

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Top Ten Steps for Retirement Preparedness

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As with any large undertaking, preparing for retirement can be less daunting if broken down into smaller, achievable goals.

Allstate's fourth annual "Retirement Reality Check" survey shows that in 2004, overall, Americans believe they're taking the right steps to prepare for retirement, with 76 percent of respondents saying they are "somewhat" or "very" prepared financially. Yet, many still have some looming concerns about retirement expenses.

Despite these concerns, a mere eight percent of survey respondents have implemented all 10 recommended retirement preparation steps, which could be an indicator that someone is on track to meeting their retirement goals. By establishing retirement goals and the cost to achieve those goals early on, Americans can be on the path to a solid financial future.

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