Baby boomers are approaching retirement age without enough savings, study finds

According to a new study developed by ALI Retirement Income Institute, a non-profit organization dedicated to retirement education indicated that the largest wave of retirees in the history of the United States is already beginning and this is because The baby boomer generation is getting closer to the full age of 65.

However, the analysis anticipates that the new population on the way to retirement is not financially prepared for retirement. which could adjust the US economy and not in a positive wayaccording to the investigation.

In this regard, Robert J. Shapiro, co-author of the study and president of the economic consulting firm Sonecon, noted that “America has never seen so many people reach retirement age in such a short periodand more than half of them will find it difficult to meet their needs in retirement, let alone maintain their current standard of living,” he said in a statement.

The report mentioned that The lack of retirement savings by baby boomers will prevent them, among other things, from leaving their jobs and even running the risk of living in poverty, and the report highlighted the enormous impact that income inequality has had on this generation.

Likewise, the research detailed that unlike white, male boomers with college degrees who are probably more prepared for retirement, People of color, women and those with little education are left behind in the race for a financially comfortable retirement and safe.

Data presented by the Federal Reserve and the University of Michigan Health and Retirement Study highlighted that More than 50% of boomers who expect to turn 65 between this year and 2030 have less than $250,000 in retirement assets.

Taking into account that the Social Security Administration (SSA) only replaces 40% of earned income for retirement checksthe average benefit would be approximately $23,000 dollars per year, taking as an example that the retirement balance of a boomer man is $268,745 dollars and that of a woman of the same age is $185,086 dollars.

Currently, due to the 2024 Cost of Living Adjustments (COLA) which are made each year to bring retiree payments in line with inflation, Monthly Social Security checks for an average-aged retiree is $3,822.

Therefore, to ensure a larger check each month, it is best to have retirement planning. Experts such as financial advisor Suze Orman recommend delaying retirement until age 70, which is the maximum age, since For each year that retirement is postponed after full age, 8% of the benefit is accumulated.

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