Retirement bottom line: Many will have to work until 70



By: Dinah Wisenberg Brin

Posted: April 19th, 2012

Will the old thirty-something gang still be showing up for work at seventy-something?

That could be the case if they hope to enjoy a financially secure retirement.

Baby Boomers, with their inheritances, homes, and old-fashioned pensions, may appear to be on track for a solid retirement — but some experts say the forecast for the generation born from 1946 through 1964 isn’t necessarily so rosy.

While Boomers are more likely than younger workers to have defined-benefit pension plans and certain other advantages — that’s particularly true of older Boomers — many may wind up financially ill-prepared for retirement unless they work longer and save more.

The recent financial crisis took a toll on wealth; inheritances on average won’t be that big; traditional pension benefits are phasing out; and many shop-till-you-drop Baby Boomers simply haven’t saved enough money to last through retirements that should stretch beyond those of previous generations, economists say.

“The majority of today’s retirees are able to afford a decent retirement. However, this group is living in a “golden age” that will fade as Baby Boomers and Generation Xers reach traditional retirement ages in the coming decades,” according to an October 2009 report led by Alicia Munnell, director of the Center for Retirement Research at Boston College.

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