Baby Boomers Short on Savings and Planning
Important: have this article ready when talking to someone that
fits the Baby Boomer age range, it will benefit you in the sale of
life insurance to this particular group of people.
About half of U.S. baby boomers are NOT saving enough money to
maintain their standard of living in retirement and many low-income individuals
will have to rely mainly on Social Security, according to a U.S. agency report.
The poorest 25% of baby boomers -- the
generation born from 1946 to 1964 -- are most at risk, according to the report
by the nonpartisan Congressional Budget Office. The savings shortfall should
prompt Congress to create more tax credits and accounts that encourage savings
among all income groups, a seniors' group said. Someone is going to have to
pick up the slack, either the family or the government.
In addition, a new study by AARP suggests that most boomers
will receive a very small inheritance, if they get anything at all. As of 2001,
only about 17% of boomers had received any inheritance and those that did
receive money didn't get much, AARP says. The median inheritance was $ 47,909.
But baby boomers in general are earning more than their parents at the same age
and preparing for retirement at the same rate, the report said.
Despite what baby boomers see happening to their aging
parents, they're still in denial when it comes to their own planning, believing
that the difficulties their parents faced will never trouble them. Taking
medications for control, and monitoring their
health conditions?
Case in point: the survey found that while almost half (45 percent)
of Americans have had a personal experience caring for an aging or ill
relative, nearly the same number (46 percent) admit that they have not taken
steps to develop long term care plans for themselves. The study of 1,040
Americans, conducted by Goodmind LLC on behalf of the GE Center, revealed
startling inconsistencies between the quality of life most Americans desire,
and the planning needed to make it happen. The study found that most Americans
have not taken even the most basic planning steps needed for their care during
retirement, such as preparing a will or living trust, purchasing long term care
insurance, or even discussing the issue with their families. America's lack of
preparedness for "care giving" during retirement is disturbing, given that
nearly half of Americans age 65 or older will enter a nursing home at some
point during their lifetime. The survey also found just how unprepared most
Americans are for health problems during retirement:
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-- 87% have not purchased long term care insurance to protect their assets in
the event of a catastrophic health issue.
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-- 63% have not created a will or living trust. -- And more than one-third,
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-- 36% have not taken the steps needed to prepare for long term health issues
that may arise as they age.
In conclusion this article should alert as to how
unprepared this generation is for their future and the roll-over to come
in 10 to 15 years. It's up to us to help prepare them.
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