BOSTON (CBS) – If you just celebrated your 50th birthday you don’t qualify as a Baby Boomer you belong in the Generation X demographic. If you are 55 you are some of the last Boomers born.
If you are a Boomer your retirement planning has been scrutinized in the media for the last decade.
Studies and surveys have shown that most Boomers have not saved enough and you know you have not saved enough. And everyone is waiting to see what you are going to do about it.
And if you fall into the category that has not saved very much and you want to retire in 17 years at the new magical Social Security retirement age of 67 what can you do?
Can you ever reach a million bucks? I can give you the numbers, but they are scary. You will need to save $29,000 a year and get an 8% return over the next 17 years. Can it be done? Maybe, but it means saving almost a half a million, $476,000.
Save as much as you can over the next 17 years. Anything you tuck away now will make for a more comfortable retirement. Use your retirement plan at work to start. For example, if you can save $10,000 a year, again not an easy thing to do, and assuming an 8% return you could have close to $400,000 ($365,000) in the retirement nest egg at 67.
Consider working past age 67 to increase your Social Security benefit or consider a part-time job in retirement. Look to pay off your mortgage during this decade so you can retire debt-free and then use those extra dollars for additional retirement savings. Also consider downsizing your home if the kids are gone. If you make a profit on the sale put that into savings.
Many Boomers believe that they will inherit money from mom and dad so they don’t need to worry about retirement planning. But what I am seeing is that mom and dad are living longer and they are consuming the dollars the kids, those Boomers, thought they were going to inherit.
And if all else fails that trailer park in Florida is looking pretty good right about now!
You can hear Dee Lee’s expert financial advice on WBZ NewsRadio 1030 each weekday at 1:55 p.m., 3:55 p.m., and 7:55 p.m.
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