Why Middle-Income Baby Boomers Will Struggle Their Way Into Retirement

The first set of Baby Boomers turned 65 just five years ago, and about four in 10 of Boomers are already fully retired, but those who have yet to retire are experiencing a lot of financial challenges, according to a recent study by Bankers Life Center for a Secure Retirement.

Of those surveyed, 60% of non retired middle-income Boomers are spending as much or more than their household income and 38% of retired middle-income Boomers have had to make adjustments to compensate for financial shortfall in retirement, the study found.

Middle-income Boomers who have not retired yet are not feeling very confident when it comes to their retirement finances. There are 69% of Boomers who don’t think they will have enough money to live comfortably to age 85 and nearly 88% of middle-income Boomers express at least one concern about their retirement.


Of the retirement concerns, 64% are worried about government decisions on budgets and spending, 56% are worried about declining health, 52% are concerned about not having enough money to pursue their interests and 50% are worried about lack of savings.

One reason middle-income Boomers may have these concerns could be due to the significant amount of debt they continue to carry into retirement. Of all Boomers surveyed, 81% currently have some debt and 28% say that they devote more than 40% of their monthly income to debt.

Furthermore, one-quarter of Boomers with a middle income level have a mortgage with more than 20 years left on it.

Though, half of non-retired middle-income Boomers say they plan to enter their retirement debt free, only 23% of those in retirement already are actually debt free.

See the full study here

Written by Alana Stramowski

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  • The article points out some real major concerns. Not only the points brought out in the article are valid but there are other concerns as well.

    We have to look at where the increases in social security checks to seniors have been from year to year. Seniors have not seen much of an increase and when they do get an increase, a good portion of that is gobbled up by the increased cost of Medicare!

    You take that with the cost of just about everything that has been going up, this spells disaster for our seniors. A good share of the average middle class senior lives pretty much on a fixed income. When you compare the REAL cost of food and other things that have been going up, to what our seniors income has risen, by golly, you have no comparison! The cost of their living expenses has far out weighed what our seniors have received in any increases of income!

    We also have the withering of many seniors savings to cover rising expenses and the loss of many seniors 401-K’s or IRA’s.

    All of this, plus what the article points out, is a dismal picture for our Baby Boomers and seniors who are now retired.

    The Federal Government could help if they wanted to. If they adjusted the cost of living index for seniors to something that is realistic and indicative to a seniors capabilities and life style, this in itself would help tremendously!

    This is why I feel a reverse mortgage can be the saving grace tool for many of these Baby Boomers and seniors already retired. Our opportunities are endless!

    John A. Smaldone

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