It’s never too late to start saving for retirement
January 21, 2011
The last couple of years have been hard on many baby boomer’s savings accounts, but the Employee Benefit Research Institute (EBRI) recently released an analysis that provides some instruction for those looking to start aggressively planning for retirement.
Nearly half of the demographic aged 56 to 62 may not have saved enough money to retire, which means that they will have to step up their investment efforts. For these early boomers to have a 50 percent chance of maintaining their current living standards in retirement, the EBRI recommends saving a median of three percent more each year.
For a 90 percent chance, one should save 4.3 percent more.
Many members of this demographic are also caring for elderly parents, which can impact both careers and savings. Installing medical alert systems in homes can allow users to send a medical alert to caregivers or doctors in the case of an emergency, so caregivers may not have to cut their work hours or leave early to check on an older adult’s health.
Younger baby boomers (age 46 to 55) and members of Generation X (age 36 to 45), have more time to plan for their golden years. The former group should save 0.9 percent more each year, while the latter may be able to balance their savings by investing an additional 0.3 percent of their salaries.