BOSTON (CBS) – The youngest of the Boomers turn 50 this year! They were born in 1964 and are the tail end of this demographic group that by its sheer size has changed the way we all live.
And today 6,000 Boomers turn 65 and another 6,000 will turn 65 tomorrow. That will happen every day through 2029.
They may be eligible for Medicare and to retire from their jobs but they still must wait until they turn 66 to collect their full Social Security benefit. And the Boomers that turn 50 this year must wait until age 67 to collect their full benefits.
About 35% of Americans are relying on Social Security to be their main source of retirement income. The average Social Security benefit is about $1,300 a month. Hard to survive on an annual income of $15,000.
So if you are approaching 65 and have not saved very much, what are you supposed to do? Well you probably cannot retire unless you want to live with one of your kids.
If you have a job, keep it. And next year when you turn 66 and can collect your full Social security benefit consider one of two scenarios; keep working and accrue a larger Social Security benefit or begin to collect while still working and save your Social Security benefit. That will give you some savings set aside for emergencies.
If you don’t have a job, consider finding one. Without some savings these will not be the golden years for you will be eating at the golden arches.
Work on your budget. List all of your expenses. That gives you an idea on how many dollars it takes to keep you solvent.
What is your income going to be in retirement? Social Security and possibly a pension? What have you got in savings? Experts say you should only use about 4% of savings annually if you want it to last through your retirement.
One more thing: Let’s say you have a $100,000 saved, which is a lot and if you take only the 4%, that’s $4,000 the first year and less each year thereafter unless it earns more than 4%. Will the $4,000 be enough to supplement your income and help maintain your lifestyle? Or do you have to withdraw more or do you have to consider changing your lifestyle and living on less?
According to a government analysis taken from the new census data, one in six older Americans lives below the federal poverty line, which almost doubles the number of very poor seniors compared to the rest of the population.