Make us your home page

Baby boomers ill-prepared to retire, national retirement institute says

A comfortable retirement is becoming more elusive for aging Americans, many of whom will have no choice but to work well into their golden years.

Sparse savings, fewer pension plans, stagnant home values and rising health care costs have created a scenario in which many of the country's 70 million-plus baby boomers — who began retiring in earnest in 2011 — will struggle to live as well as their parents in old age.

The National Institute on Retirement Security says that "92 percent of working households do not meet conservative retirement savings targets for their age and income."

There are 45.1 million older Americans today, according to the federal government. That demographic is projected to grow to 77.4 million by 2033.

Much of the squeeze on would-be retirees can be traced to a lack of savings. William Wood, a senior lecturer and director for Wright State University's financial services program, suggests that people save 10 percent of their income for retirement, but one-third of the workforce has no savings set aside, studies show.

Only 57 percent of the workforce even has access to employer-sponsored retirement plans, such as a 401(k), according to the National Institute on Retirement Security. As a result, many baby boomers — who are reaching retirement age at a rate of 10,000 per day — have no choice but to keep working.

Wood said a recent study by Fidelity found that 75 percent of individuals in the 55-to-64 age bracket have less than $30,000 in 401(k) savings.

Also, because people are living longer, health care has the potential to drain savings. Almost 70 percent of people turning 65 will need long-term care at some point in their lives, according to the U.S. Department of Health and Human Services.

Baby boomers ill-prepared to retire, national retirement institute says 02/19/14 [Last modified: Wednesday, February 19, 2014 10:27pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours

  1. Trigaux: Tampa Bay household income tops $50,000 but still makes us look poor

    Personal Finance

    The good news is Tampa Bay's median household income finally crawled above $50,000 last year. The bad news is that figure — officially $51,115 by new U.S. Census Bureau data — still puts the Tampa Bay region as the poorest of the nation's 25 largest metro areas.

    Tampa Bay still has the lowest median household income among the 25 most populous metro areas, according to U.S. Census Bureau data.
  2. Make-A-Wish Foundation aims to help more kids in Tampa Bay


    The Make-A-Wish Foundation is on the lookout for sick children in the Tampa Bay area who need a once-in-a-lifetime pick-me-up.

    Grace Savage, a 10-year-old girl with a chromosomal disorder made a trek to the Clearwater Marine Aquarium last year, courtesy of the Make-A-Wish Foundation. The foundation intends to beef up its presence in the Tampa Bay area after a reorganization. The region is now the responsibility of the foundation's Southern Florida chapter, one of the most active in the country, with more than 11,000 wishes granted so far. [JIM DAMASKE   |   Times ]
  3. Florida hides details in nursing home reports. Federal agencies don't.


    TALLAHASSEE — Gov. Rick Scott widened his offensive Thursday against the Broward nursing home he blames for the deaths of 10 residents by setting up a tip line for information, but when it comes to access to the inspection reports of all nursing homes, the governor's administration has heavily censored what the …

    In the foreground is a document detailing the findings of a Feb. 2016 inspection at the Rehabilitation Center at Hollywood Hills obtained from a federal agency, the Center for Medicare and Medicaid Services. Behind it is the state?€™s version of the same document, from the Agency for Health Care Administration, showing how it has been redacted before being released to the public. [Miami Herald]
  4. 'Toxic' times: How repeal of Florida's tax on services reverberates, 30 years later

    State Roundup

    TALLAHASSEE — Long before Hurricane Irma attacked Florida, the state faced a troubled fiscal future that the storm will only make worse.

    Robertson says the tax debate is now “toxic.”
  5. Fewer Tampa Bay homeowners are underwater on their mortgages

    Real Estate

    The percentage of Tampa Bay homeowners underwater on their mortgages continues to drop. In the second quarter of this year, 10.2 percent of borrowers had negative equity compared to nearly 15 percent in the same period a year ago, CoreLogic reported Thursday. Nationally, 5.4 percent of all mortgaged homes were …

    The percentage of Tampa Bay homeowners underwater on their mortgages  continues to drop. [Times file photo]