CHARLOTTE, N.C. (WBTV) – New research shows many peak baby boomers are not financially ready for retirement.
Fortunately, there are some simple steps people can take now to prepare.
Peak boomers are the last group of baby boomers and will turn 65 between now and 2030. They are also the largest population, creating the biggest wave of retirement in U.S. history.
According to ALI Retirement Institute, 53% of peak boomers have less than $250,000 in assets. Huge disparities exist in that data. Men have an average retirement balance of over $268,000, while women only have an average of $185,000. The number is even lower for those without a college degree, just $75,000. With a college degree, that number is over $591,000.
The report also noted that many peak boomers are likely to rely on social security as their primary source of income; however, it is only designed to replace 40% of a person’s income.
Experts say younger generations should start thinking about retirement and the future now.
NerdWallet breaks it down into three easy steps:
- If your company offers an employee sponsored retirement plan like a 401(k), and they match your contributions, use it.
- Contribute to an IRA, Roth or Traditional, and max it out if you can.
- If you max out your IRA, continue making contributions to your 401(k) or other employer sponsored retirement plan.
