Sunday, March 7, 2010

Do Baby Boomers Need to Supplement Retirement Income?

Some have asked why I am doing this blog?  They tend to think that most baby boomers are pretty well set for life when they are ready to retire. I beg to differ.  I would guess that a person needs roughly $60,000 annually to live fairly well in today's economy.  This is equivalent to $5,000 per month.  Assume Social Security income of $1200 per month and a pension of $1800 per month, for the lucky ones.  This income still leaves us $2,000 short of our $5,000 per month goal.  In order to compensate, one would need roughly $750,000 in their 401K plan to achieve the difference.  Let's be honest, how many people actually have an investment account approaching anywhere near $750,000. Most baby boomers need some way for them to supplement retirement income.  

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