Boomers will have to save more money than their parents for retirement

Alan Wu

December 7, 2010

A local financial consultant recently told The Marion Star that, due to economic uncertainty, many baby boomers who are planning for retirement will have to save more money than their parents.

"Previous generations had a larger percentage that retired with a fixed guaranteed pension," Mike Doseck told the news source. "That defined benefit has been largely replaced by defined contribution plans like 401(k)s. If you don't contribute, you don't have retirement benefits."

He added that younger baby boomers who were born closer to 1964 may have more of an advantage than the older members of the demographic, because they have more time to save.

There are other factors that will make retirement more expensive. Doseck suggests that Social Security payment plans are different than in years past, so households will have to compensate for the difference

Additionally, retirees will have to account for longer lifespans and, consequently, more healthcare costs.

Taking preventative measures during the golden years can be crucial in planning for the future. Older adults may want to install a personal emergency response system in a residence to ensure that they can age safely at home.

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