Baby Boomer Retirement

RETIREMENT REALITY: Most will have to work for years after they retire.

Baby Boomers are becoming aware that their retirement dream has drastically changed from the life of leisure they once envisioned.

Baby Boomers are beginning to come to the realization that:

More money is now needed to enjoy retirement than any previous generation ever required.
They will live longer then passed generations
Social Security was always a supplement and never a retirement plan.
Social Security is the process of very drastic changes.
Most will continue working longer then any previous generation and never realize the full retirement dream.

Eight out of ten Baby Boomers (born between 1946 and 1964) believe that they will still be working during their retirement years. The oldest, born in 1946, will reach 62 in 2008 as they begin retirement age over the next 20 years. Many are now preparing for their second career after their retirement from the first. Many are not considering retirement as an option at this time.

Most corporate retirements are now a thing of the past. 401k plans, Canadian RRSP's and stock portfolios have taken a decline in the past few years. All now realize that Social Security was and is a supplement to retirement and by the year 2010 will only be able to payout 75% of the benefits to all retirees. Yes Social Security will be overhauled, but at what expense???

The average boomers net worth is currently at $145,000 comprised, mostly of savings and 401 investments. Interest rate returns on these investments have been incredibly low for the past several years. So with the cost of goods rising, driven by high energy cost and low returns on investments, I can understand why most boomers see themselves working into retirement.

So what part-time jobs will be available for retiring boomers?

The economy of this country has been going thru a drastic change. We are told that current workers need to reeducate themselves for the new technology era. And so many have and where are those jobs now going? Outsourcing to Mexico, India, China and any other place cheap labor can be found. High skilled computer tech jobs, billing service for major corporations and even US Tax preparation are all being done in foreign countries. So what are the part time jobs for the retirees???

A good insight into the future jobs of the retirees can be found in Florida, where many current retirees are supplementing their incomes now. In the 70’s, 80’s and 90’s many retirees choose Florida as a place to retire. In addition to the great weather, housing was affordable, no State Income Tax and all around lower cost living. In the 70’s, my parents and uncles retired to Florida with decent government retirements and lived comfortably, without going back to work. But now that I live in Florida for all the same reasons I see and talk to so many of the current retirees who are in their 70’s working in food stores, Home Depot, Wal-mart and just about every other type of store. In talking to these retirees I have found that many have retired on decent pensions, but the cost of fuel, food and medicines are eroding even the good pensions. As I have talked to each of these retirees, in the forefront of my mind is, wow this could have been me. But I know my carefree retirement of 15 years will continue throughout my life, due to the investments I have set into place.

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