'Peak Boomers' May Have a Retirement Problem

Analysis suggests two-thirds of those turning 65 don't have enough savings
By Gina Carey,  Newser Staff
Posted Apr 19, 2024 1:36 PM CDT
'Peak Boomers' May Have a Retirement Problem
As more Americans turn 65 than any time in history, a new report found that many don't have enough savings to retire comfortably.   (Getty / Facundo Diaz Montes)

With the "silver tsunami" upon us, more boomers will turn 65 this year than in any other time in history in the US. But most won't be able to retire comfortably at the start of their golden years, according to CBS News, with two-thirds unlikely to have the means needed. The outlet breaks down a new report from the nonprofit ALI Retirement Income Institute that has a dire forecast for "peak boomers" born between 1959 and 1965.

  • American dream disrupted: "A majority will find themselves with inadequate resources for retirement, and a large majority will either have inadequate resources or are likely to suffer significant strains in retirement," study coauthor Robert J. Shapiro tells CBS MoneyWatch. "This isn't part of the American dream."
  • Not enough to retire: The study found that 53% of younger boomers have less than $250,000 in assets. In a recent survey, most Americans say $1.46 million is the magic number for retiring comfortably (though boomers estimate a lower amount, around $990,000).
  • Social Security's role: The study found that about a third of peak boomers will rely on their Social Security benefits for 90% of their income by the time they reach 70—with average benefits at about $23,000 per year, these savings were designed to replace about 40% of a retiree's income.
  • Retirement's racial gap: Across demographics, white men were found to be most prepared to retire, RetirementNews notes. Along with disparities between male and female boomers, there was a sharp difference in the median retirement savings by white retirees ($299,000), which were significantly higher than Black ($49,000) and Hispanic ($123,000) boomers.
(Consider these states for retirement.)

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