If you are one of those baby boomers who thought they had enough savings to retire on but now are scared of going broke….join the club. Boomers who considered themselves wealthy because they are sitting on six figures in savings are now thinking they may not have enough.
There was a time when retirees could spend 4 percent of their savings per annum without the risk of running out in the last 30 years of their lives. The new number according to the latest research – is down to 2.1 percent.
What happened? For one thing, we may live to upwards of 95 years old. Put that factor on top of rising housing, health and food costs and you have the perfect storm scenario that makes retirees resort to strategies that used to be reserved for not so rich boomers. Instead of enjoying their retirement funds, they are still squirreling away savings.
The general perception that boomers, who own half the nation’s wealth, are kicking back and having a ball, is not really the case. Federal Reserve data indicates fewer than half of all boomers have enough savings for retirement and 43 percent of 55 to 64-year olds had no savings at all in 2022.
Now you can understand why the new retirement plan is the no retirement plan. It also explains why so many boomers are coming out of retirement to go back to earning money to live on. Around 20 percent of Americans over 65 are employed. That’s about 11 million people, and they pull in about 7 percent of all wages and salaries paid by U.S. employers. Back in 1987, they made up only 2 percent.
Spending below your means may be the new lifestyle of the “I thought we were wealthy” crowd. If you’re feeling sorry for yourself, spare some sympathy for Gen Xers who are worrying about financial insecurity right now, never mind worrying about retirement woes ahead.
But, as Buddha advised, “Do not dwell in the past, do not dream of the future, concentrate the mind on the present moment.” Or as many fathers said to their sons, “Get a job!”
Jay Harrison is a writer and creative consultant for DesignConcept. His newest mystery novel, Rio Puerco Demise is available on Amazon. His first mystery novel, Head Above Water, is also available on Amazon. But that’s not all. You can also purchase the Best of BoomSpeak on Amazon.
Here is something I haven’t seen in awhile – sunshine. The sky has been layered in ashy gray light for the whole month of January. Today, though, the sun pours over the snow and turns it white and shiny. Long, inky shadows from the trees criss-cross this canvas like lines of calligraphy. A soft breeze lifts puffs of snow off the roof tops and scatters it across the land. The sun pierces the icicles dangling from the branches and lights them from the inside out. This is the light that flows through my window and across the pages of my notebook.
Kate wasn’t sure how long she’d been sitting in this spot. The clangs and whistles of the machine transported her to a familiar hypnotic trance. Her right arm reached for the button as easily as breathing. She watched the numbers roll, not aware of whether she won or loss. When the light dimmed and the rolls ceased, she took her last $20 and slid it into the machine’s mouth. “This is the last one,” she muttered aloud as if trying to convince herself, and the machine, that she had some measure of control.
Here’s a new game. You know you’re old when ______ (fill in the blank…you know, the blank).
It was our mother’s 1960-something Good Housekeeping Magazine that helped ease my sister’s loneliness and gave her hope for future happiness. Growing up, I always sensed that Elaine was different from me and our peers. In photos of our 1950s Easter Sundays, I posed in pastel dresses, teased hair and frontward knee, our younger brother in a little-boy-suit, squinting against the sun. Elaine, the oldest, towered over us, donning a dress, hat, and handbag. The outfit was her size, but none of what she wore seemed to fit her.
During the first couple of months after I retired, my husband and I were driving each other nuts, what with me wanting him to eat healthier and live longer and then his raging indifference to my loving intentions. So, I thought, fine, you want to die, let’s get this show on the road, and I gave him “Bacon of the Month Club” for Christmas.
