All those dire predictions about the level of retirement readiness of the Baby Boomers may be incorrect, says Mary Beth Franklin in Investment News.
One of the most closely watched areas focused on retirement readiness as boomers navigated a changing labor market that saw the demise of traditional pensions and the rise of the 401(k). Now many of the oldest boomers — those born in 1946 — have moved into retirement. Despite the dire predictions of their dismal retirement prospects, many of them are doing just fine.
Premature assessment, isn’t it? Yes, of course they are doing just fine now (just a few years into retirement)! The test comes in if they have saved enough money to be doing just fine in 20 years. To be fair to the author of the article, she does present some studies that discuss the varying levels of retirement preparedness of the Baby Boomers.
The reality is that some of the Baby Boomers saved adequately and will be just fine and many will be struggling and relying on others for help. I have great confidence in humanity so the vast majority of those in need will find help from children, churches, or the government, but many will probably wish they had put more thought and action into a disciplined savings and investment plan.