Good articles in Fortune June 26, 2006 issue on Baby Boomers & Retirement. Although I am a long ways from retirement, there were some good facts to start thinking about. Here are some takeaways:
- Average household reduction in income during retirement = 43%
- Median balance of 401K programs for those near retirement = $60K
Concerning how much babyboomers will inherit from there parents, here are some interesting facts:
- In general the average amount given per child is greater the younger the boomers parents are, so so retirees born in 1923 and earlier will give half the amount on average than retirees born from 1942-47
- 25% of boomers will get little to nothing, 50% of boomers will get between $10K and $75K, and the top 25% of boomers will get between $75K and $400K (bequest per child)
- Nearly half of all money will come from the wealthiest 7% of estates
- When all is said and done, estates will average giving 60% to heirs, 21% to taxes, 15% to charities, and 4% for fees
Percentage of Americans that are 65 and older
- 7% – 1940
- 8% – 1950
- 9% – 1960
- 10% – 1970
- 11% – 1980
- 12% – 1990
- 12% – 2000
- 13% – 2010 (projected)
- 17% – 2020 (projected)
- 19% – 2030 (projected)
I think it was Peter Drucker who said this is the biggest challenge and concern for us in the future, one worker for 2-3 retirees, something that has never happened in the history of the world. Baby Boomers and Retirement are good things to think about.
