With Pensions Disappearing...Can Baby Boomers Still Count on Lifetime Income in Retirement?

| March 05, 2020
Share |

I think about being 63 sometimes and subtract years from it to remember a time in the past to feel how fast the time has flown.

My sister and I used to talk about how old we would be in 2000. I said I’d be 43. I won’t say her age!

So that was 20 years ago. When I look 20 years ahead, I’m 83. That’ll be here before I know it.  

To get there one of the biggest things for me to do is to make sure I have enough income to maintain my lifestyle and be able to handle any contingencies along the way.

Now when we were little kids, some of us may recall grandparents who retired at age 65 with a secure pension from their former employer, along with a shiny gold watch.

Combined with their income from Social Security, they were likely far less stressed than the Baby Boomers who are retiring today with no defined benefit pension plan to count on.

In fact, given the disappearance of company pension plans and the uncertainty of Social Security, the biggest fear on the minds of many Boomers today is running out of assets – and in turn, income – in retirement.

The good news is that there are still ways to secure a lifetime income stream in retirement – even if you never worked for a large (or small) company.

There are some insurance products that can be put in place to ensure that you never run out of money, but that’s a conversation for another day.

What’s interesting to me is how many people wouldn’t dream of going without homeowners’ and car insurance, but “income insurance” is still a relatively new concept for many investors, retirees, and even for some financial professionals.

The big question for us Boomers near retirement isn’t so much about investing our money for growth, as it is converting a lifetime of savings and turn it into an ongoing income stream.

And I firmly believe, a successful retirement isn’t just about how much you have saved. Rather, it is centered around how much income you can generate from what you have saved, and for how long.

Figuring out how to do that is one of those things that is part art and part science. And, also one of the reasons why Denny and I write books on the subject – to be of help to Baby Boomers

So, consider working with a retirement income specialist who can help you to create a plan that works best for your specific objectives, time frame, and financial risk tolerance.

FYI, we have a new book coming out in the early Spring called:

“Baby Boomer Retirement Roadmap: 5 Keys to Enjoying the Lifestyle You Want for the Rest of Your Life”

I’ll let you know when it is available.

Until we meet again…

Best to you always,

Artie

 

 

Share |