Wednesday

Why Boomers Need Bigger Nest Eggs Than Their Parents

Baby boomers are finding out quickly that they'll need a bigger nest egg than their parents, especially those that are retiring.  The reasons are simple;
  1. Few boomers have a defined benefit pension plan.  Companies have slowly done away with pension plans, opting to offer 401k plans which puts the responsibility (and the liability) on the participant not the company
  2. Boomers cannot count on home equity.  While home equity is likely to rebound to some extent, the days of home equity funding retirement are long gone.
  3. Interest rates are significantly lower than any time in recent history.  Replacing income utilizing today's fixed income options will require five times what it took a generation ago
  4. Life expectancy has increased dramatically
  5. Health care costs have increased significantly
Check out the realistic retirement plan link for a quick and easy way to see where you are at currently.  

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