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Retirement planning vital for baby boomers 2010-06-08 The baby boomer generation understands the importance of planning adequately for retirement, but knowing how much income will be necessary to ensure they do not outlive their savings can be the tricky part. A leading financial services firm estimates that retirees may need more than 70 percent of their pre-retirement income to maintain their current standard of living. Of the 70 percent, Social Security benefits may only account for 40 percent of pre-retirement earnings. But accounting for the remaining 30 percent may not be as difficult as older adults may think. Americans can boost their retirement accounts by utilizing catch-up contributions after age 50. Rather than the maximum $5,000 per year contribution, adults over 50 can contribute an additional $1,000. Adults should also protect their current retirement income from medical emergencies by purchasing long-term care insurance and maintaining adequate health coverage. It may seem counterproductive to spend money while saving for retirement, but reports show that most retirees may require a stay in a nursing home or face other long-term care needs. Medical care can be expensive if retirees do not plan ahead, which may put their nest egg in jeopardy.  |
