Baby Boomer Earnings Continue To Decline ? But Some Boomers Are Thriving. Baby Boomer earnings continue to decline according to U.S. Census Bureau statistics. Medium income dollars from 2007 to 2009 for those 45-64 years of age decreased as much as 5.5%. Income for the 65 and older segment remained pretty much constant due to their fixed income status. Adding the cost of living increases over the past several years to the decline in income makes the effective Baby Boomer buying power even less.
Top Concerns of Baby Boomers. Two of the top concerns of Baby Boomers (especially those considering retirement) are: Having enough funds to last through retirement; and maintaining their lifestyle in retirement. How do you create the income you need to achieve your desired goals in these areas? Will your money last as long as you do? For 2011, the life expectancy in the US is 78.4 years according the CIA World Factbook. If an individual reaches age 60, he or she could live to 81.2. In fact, for a healthy couple age 65, there is a 55 percent chance that one person will live to at least age 90.
Layoffs may have slowed, but they have hardly disappeared. According to the recently released report by global outplacement consultancy Challenger, Gray & Christmas, Inc., ?the slow pace of downsizing that marked the second half of 2010 appears to be continuing into 2011.? The report goes on to say there are no signs of a turnaround in 2011. As reported in various news media there are a growing number of states approaching a point where it could become necessary to declare bankruptcy. This will likely lead to further job cutting. Whether you are facing a layoff, early retirement, or planned retirement how do you preserve your retirement income? Or are you planning to cut back on your lifestyle?
A Higher Percentage of Older Workers are in the Work Force. One way, for some Baby Boomers, to address these concerns is to continue to work at their present job assuming they avoid a layoff. According to a February 2011 report from the Employee Benefit Research Institute (EBRI) ?more people in the age 55 and older group (40.2 percent) remained in the work force in 2010?. This is the highest level since 1976. The increase is expected to continue as full-retirement age for Social Security benefits rise and issues with Medicare and non-Medicare-covered health costs continue to climb. Other factors influencing the delayed retirement plans of many seniors include: longer life spans and long-term care for their aged parents; and the concern of their ability to maintain their lifestyle in retirement. The full report can be obtained from EBRI.
Retirement income is likely to come from multiple sources. In many cases retirement income comes from Social Security, a government pension, 401K type accounts, savings, and perhaps stocks. According to a recent Gallup survey ?slightly over half of American retirees say Social Security is a major source of income.? There is a lot of uncertainty of the future of Social Security amongst Americans. It seems every week we hear of concerns for Social Security in the media and reports from Congress. Another income source for retirees are 401(k), IRA, Keogh, or similar type of retirement accounts. Unfortunately, these have taken a real beating in the recent market decline, some as much as 50%, as I experienced. Pension income is a third source of retirement income. However, with more companies offering fewer or reduced pension options, newer workers may receive less generous payments than their predecessors. Savings accounts and certificates of deposit to fund retirement are a fourth source for a few retirees. However, I suspect, for most people, savings accounts are more for those unexpected emergencies rather than as a source of income.Although the stock market is falling out of favor as a way to generate income in retirement, it can be a viable source if one has accumulated a sizeable portfolio. Another popular alternative among Baby Boomers is to engage in a part-time or even full-time revenue generating source such as multi-level marketing, part-time jobs at an established business, or in online marketing. These are all viable but should be thoroughly investigated to avoid a waste of precious retirement income and time not to mention frustration.
To learn more about maintaining your retirement income while improving your retirement lifestyle visit Baby Boomers Income. Through proven training and mentoring, Michael E. Wethington has become a successful online business owner and entrepreneur believing that through training and mentoring anyone can find success online.
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