According to a recent article from Main Street, members of the Baby Boomer generation should be saving more for retirement. The article states that senior citizens should replace 70% of their pre-retirement income with distributions from Social Security, retirement savings and other retirement income – yet Baby Boomers across the nation are falling behind in savings.
The article states that many Baby Boomers are underprepared for retirement, and when you look at the statistics, you can see why A.cording to a study by the U.S. Census Bureau, people over the age of 65 have an income 60% of what pre-retirees are making.
So how do Baby Boomers fix the issue? Several suggestions include saving more in pre-retirement years, delay receiving Social Security payments, and working a few years longer to have more time to build assets.
Delaying your Social Security payments can be a particularly effective form of saving. According to the article, if you wait until the age of 70 (as opposed to 62) to receive Social Security payments, your payment could increase as much as 76%!
If Boomers are faced with debt and unable to save more, the article suggests consolidating loans for a faster payoff period. Taking advantage of tax strategies and becoming tax efficient is another method suggested by the Main Street article.
SOURCE: Main Street