We keep hearing about the coming wave of baby boomer retirements and how it’ll impact leadership and succession planning.
Given the news of the past week, though, I’m not sure they’ll be able to retire at all.
First up is a new study from Fidelity Investments, which estimates the average boomers’ retirement income will be 44 percent short of what they need to maintain their standard of living.
“Based on the self-reported information, Fidelity estimates the ‘average’ baby boomer will need after-tax income of $4,800 a month starting at age 67 (the year after reaching the Social Security ‘full retirement age’ of 66), and will live to be 92,” Gail Buckner writes in this Fox Business article. “Income from Social Security, pensions and withdrawals from investments is projected to make up $2,700 of this amount. That leaves an estimated monthly income gap of $2,100.”
In other words, ouch.
Then there’s this: Full Social Security benefits will be “exhausted” by 2033 — three years earlier than expected, according to the Social Security Trustees’ annual report. That’ll widen the boomer retirement gap even further.
There are some things boomers can do to close the retirement savings gap, but they have to start now. They could probably use a little professional help, too.
It’s little wonder that “financial planner” comes in at No. 5 on CareerCast.com’s list of the best jobs for 2012. Has the need for sound retirement advice ever been greater?
Speaking of which …
Financial planners, it’s never too early to mark your calendars for the MACPA’s annual Personal Financial Planning Conference. It’s scheduled for Oct. 26 in Baltimore. Keep an eye on MACPA.org for details.