More And More Retiring Baby Boomers Are Broke
by: Pat Hernandez, March 9, 2012 6:03:00 pm
The report "Single in Retirement," released by the BMO Retirement Institute, finds singles face a unique set of financial, emotional and planning challenges.
According to U.S. Census data, among people age 65 or older, 47 percent of women and 18 percent of men now live alone. That's almost double the number of older single women in 1970, and more than 20 percent more for older single men. Steve Williams heads financial planning strategy for BMO-Harris.
"There's this really perfect storm coming, where people have to worry about living longer, low return rates, potential for higher inflation, and add to that, a risk of living part of retirement single, which all create financial difficulties."
The BMO Study says not all single baby boomers facing retirement do so equally.That could mean women who find themselves suddenly single in their 50s and 60s can't afford to retire.
Clark Hodges is a financial planner in Texas. He says the report focuses on the difficulties singles face if they haven't saved enough for retirement.
"There's arguments to be made that part of your money needs to be in a growth vehicle, so it's growing, the assets are growing and not living off the income at 65. And I'd say, as you get into your 70s, in your late 70s, you start trickling back to more of an income portfolio. But you do need growth, even though you're retired, because you're gonna outlive your money if you don't have some growth."
You can find more information by going to the Harris Bank website.