Study Shows 47 Percent of Baby Boomers Do Not Have Enough Money for Retirement
A new study released by the Employee Benefit Research Institute in Washington, D.C., shows that 47 percent of American workers who are currently 56 to 62 years old will not have enough money for retirement. For those who are now 36 to 45 years old, 44 percent are likely to run out of money in their retirement years.
According to EBRI researchers, the length of time someone has been invested in a 401(k) plan is the main factor in determining if they will have enough money for retirement. However, the study also showed that most 401(k) balances are still relatively low, which means that some older workers will likely need to keep working in retirement and adding an extra impetus for younger workers to plan for retirement.
Researchers said that putting an extra five to ten percent of your income toward savings would in many cases solve this problem for younger workers.
The EBRI research also showed that higher income workers are not necessarily immune to future financial troubles in retirement, either. Researchers said that higher earners are adversely affected by nursing home costs later in life, and still face a significant, if smaller, risk of being unable to meet medical expenses and other basic costs in retirement.
To learn more about retirement, please consult our Jacksonville estate planning attorney.
