Jan

15

Boomer Report

Posted by cameron

January 15, 2008 |

I just read an interesting report at Yahoo Finance about the oldest boomers (me). This report is based on a research study from MetLife’s Mature Research Institute. My father never thought I would reach maturity but here I am, along with 3 million others. What is interesting is that the majority in this age bracket seems to have similar attitudes to me and is unlike previous research models that suggest boomers will retire at 62 and be destitute. This age group is not retiring at 62 (read: taking social security at 62), it is far from broke and is in good health overall.  This age group is fortunate in that peak earning years occurred when companies were switching away from pension plans towards adoption of 401Ks. For many, company pension plans were honored as companies started to offer the alternative 401K. New employees were only offered 401Ks at this time but those older employees had both opportunities. That one thing will help older boomers to a relatively comfortable retirement. Of course that will change over time as younger boomers retire without the double benefit.

Those that take social security early are concerned that there will be nothing left later on. My take is different. I would rather take it later with the assumption there will be a cut in benefits some time in the future. Taking it later gives me more of a cushion for those cuts later on. Taking social security early leads to great pain in the future.

The oldest boomers are uniquely positioned to do whatever they choose to do. Freedom is probably the greatest lifetime achievement that anyone can aspire to.


Comments

2 Comments so far

  1. VintageP on January 16, 2008 9:48 am

    While retirement planning is always important, economic conditions along with government policy in force during peak earning years can greatly influence the outcome. With fewer advantages in the latter, the former becomes that much more important.

  2. cameron on January 21, 2008 9:58 am

    You are right on.

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