Potentially Avoiding a Retirement Crisis

4 Ways to Avoid Your Own Retirement Crisis  reports that 56% of Boomers and GenXers (38 to 65) are saving enough to cover basic retirement costs.   Of the 44% not doing so, 20-30% are partially ready and can consider the following actions to become more ready.

• Increase savings rate 1-2% a year.
• Work two extra years.
• Buy an annuity
• Work part-time for five years.

In our case, we increased our savings rate when we were working and have worked part-time almost 5 years since taking early retirement in 2007.   Since we were already retired, we can't work two extra years any more, but I would consider if we were still working.   Finally, we have not bought an annuity, but we are thinking about annuities for our future.

Still, with the Great Recession, our retirement has constantly been at risk, which is the main reason I've worked part time during my retirement.    My learning is that our retirement will always be at some risk since neither of us have a pension, which makes having an annuity an attractive option.
For more on Reaping the Rewards, check back every Friday for a new segment.


This is not financial or retirement advice. Please consult a professional advisor.

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