Research Shows That Baby Boomers Will Face Inadequate Retirement
According to the Boston College Center for Retirement Research for Boomers, there may be a possibility that forthcoming baby boomers may have a problem with their retirement funds if their only option after they resign from work is their 401 (k) plan and Social Security.
Boston College Center’s director for external relations Andrew Eschruth believes that a lot of retirees may not be able to continue with the lifestyle that they’re used to because according to the guideline that they’re using, for someone to be able to live at ease after retiring, they would need at least 65 to 85% of their pre-retirement income.
Back when George W. Bush was still President, he recommended the idea that a share of the Social Security be placed in a private investment of some sort. However, it became a big issue that came under so much scrutiny that his administration decided to let this suggestion go. Now that a new President has taken over, it’s up to him to come up with a solution on how to organize this “mess” concerning Social Security.
In view of the fact that this may happen, the Boston College Center proposes future retirees to consider other option to bridge the gap of their income need once they’ve stopped working. They suggest something that is fixed and binding and would ensure them a good life by receiving the proper amount they need to maintain their standard of living. One such resolution that they’ve been contemplating on is an “exploratory idea” where the obligatory involvement of an employer to pay their workers is required.
It seems that retiring nowadays is a hard thing to do especially since one might face more financial problems due to inadequate resources. It’s good to know that some people have the initiative to try and deliberate upon an answer that will greatly affect a lot of people in the coming years.
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