Monday, December 1, 2008

Why Baby Boomers Will Have to Work Longer

Ok...finally the economists are admitting it - we are in a recession and it seems that we have been in it for the last year.

Most of us already knew that right? I have been talking to Baby Boomers who see 401K's shrink and visions of planned retirement disappear.

The latest McKinsey Glogal Institute report shows "two-thirds of the oldest boomers are financially unprepared for retirement. Many are not aware of their predicament. This lack of sufficient resources will not only mean a less comfortable retirement for tens of millions of households but also depress spending in the overall economy."

Additionally, the report states many Baby Boomers actually do not want to retire and continue to work. In a tight job market, the competition is strong for Baby Boomers seeking work.

Some thoughts about finances before making the next career transition:
1. Find out the real financial situation is and will be after retirement.
2. What guidelines will affect working and receiving retirement payments from employers?
3. Will you work part-time or full time?
4. Can you continue with your existing employer in current career?
5. Can you "phase" in retirement?

2 comments:

Aaron said...

There is an unprecedented change underway to the tradutional notion of retirement. Strategies to accomodate tenured workers re-entering the workforce will become increasingly common over the next decade.

Marcia Robinson said...

Aaron,

You are completely correct about the changes in the traditional notion of retirement...for so many reasons. I am thrilled to see your website and hopefully we will learn much from you and your readers moving forward.

Marcie