12 Terrifying Retirement Facts Keeping Boomers And Their Advisors Up at Night
According to the Employee Benefit Research Institute, 46% of all American workers have less than $10,000 saved for retirement and 29% of all American workers have less than $1,000 saved for retirement.
Right now, there are almost 40 million senior citizens in the U.S. By 2050, that number will more than double to almost 90 million and all of them will be taxing the systems, services and resources you use and, possibly more frightening, competing with you in the job market.
A study conducted by Boston Colleges Center for Retirement Research has found that American workers are $6.6 trillion short of what they need to retire comfortably. Sure, theres still time to make some of that difference up. But how?
One out of every six elderly Americans is already living below the federal poverty line, according to the U.S. Census Bureau.
Over the next 20 years, more than 10,000 Baby Boomers will be retiring every single day. And over the next five years, the health and medical insurance industrys revenue is forecast to increase at an average annualized rate of 5% to more than $865.8 billion putting even more pressure on most retiring Boomers underfunded retirement nest eggs.
At the moment, only about 13% of all Americans are 65 years of age or older. By 2030, that number will soar to 18%.
Meanwhile, Medicare expenditures will assuredly increase as this generation retires, forcing many individuals at least those who can afford it to pony up for supplemental private insurance to fill in the gaps the government doesnt fill.
Between 1991 and 2007, the number of Americans between the ages of 65 and 74 that filed for bankruptcy increased an astonishing 178%.
Back in 1991, half of all American workers planned to retire before they reached the age of 65. Today, that number has plunged to just 23%.
According to one recent survey, 74% of American workers expect to have to work even though they are retired.
According to a recent survey of Baby Boomers by the American Association of Retired Persons, 40% plan to work until they drop.
Fifty-six percent of American retirees still had outstanding debts when they retired, according to a survey by CESI Debt Solutions.
According to a survey by Americans for Secure Retirement, 88% of all Americans are worried about maintaining a comfortable standard of living in retirement up from 73% in 2010.
Also see: The Five Biggest Threats To Your Clients Retirement Nest Eggs
Americans, particularly Baby Boomers, are more nervous about and unprepared for their retirement today than at any time in history. Survey after survey has found that people are delaying their retirements, planning to work during their retirement and scaling back expectations for their golden years.
Here are 12 not-so-cheery facts that Baby Boomers and their financial advisors need to appreciate and address in the coming year to ensure they're properly prepared for the retirement they've always envisioned.