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(818) 887-6443

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20335 Ventura Boulevard, Suite 125

Woodland Hills, CA 91364

Baby Boomer Basics

There are over 77 million baby boomers in the United States currently, and they are primetime candidates for retirement.  But wait!  Most boomers will likely never see themselves in the same situation as their parents.  A large percentage of baby boomers are pushing back their retirement and continuing to work.  One of the culprits is their higher standard of living: things that were once considered luxuries have become more like basic needs to the baby boomer generation.  Weekend getaways, funding children’s and grandchildren’s education, planned yearly vacations and dining out are now basic necessities.  And rising inflation rates compound the issue.

A study by New York Life Insurance Company yielded some interesting statistics:

• Baby Boomers represent 26.1% of the total U.S. population

• 22% identify their health as “excellent”

• 40% are overweight

• 51% are grandparents

• 48% are without a financial advisor

• $62,300 is the median household income

• 12 hours monthly are spent in volunteering

• Life expectancy of males is 79 and of females is 83

• There are 96.4 male boomers for every 100 female boomers

• 8.9 million boomers reside in California – the most of any state

And of the 59% of boomers delaying their retirement, 40% are doing so in order to afford the lifestyle they want, not only because their generation is more indulgent than their parents’, but also because they need more money than their parents’ generation to live comfortably. Furthermore, baby boomers admit that they will be healthier and live longer than their predecessors.  Now, that last statement is debatable, but what is not is the increase in medical advances that have prolonged life expectancies, leading to an increase in livable retirement years.  The complex baby boomer equation of longer life expectancies, more expensive lifestyles and a need for luxuries in life doesn’t amount to a concrete answer.

So, will boomers approaching age 65 be able to retire?  Will they be able to live the lifestyle that they have become accustomed to?  Saving for retirement was not the generation’s forte.  For the majority of them, planning for the future wasn’t something that was at the forefront of their plans.  And now they are left asking themselves “what are we going to do now”?  Many boomers may have to continue working longer than they had expected, foregoing retirement for up to another 10 years.

It all comes down to planning (or lack thereof).  Regardless of whether you are 30 years out from retirement or you are one of the anti-planners close to your retirement years, it’s not too late to get help.  Contact us  for a complimentary consultation to see what it will take to get your retirement on track.

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