In case we needed yet another reminder about the general lack of preparedness for retirement, a new study from the Society of Actuaries shows a grim reality. It concludes that nearly half (48%) of baby boomers have no financial plans in place in case they live longer than expected.
Also, not surprisingly 71% of the respondents in the survey said they plan to claim Social Security benefits before the age of 70. People can choose when to tap Social Security, but they generally get more if they wait longer. And the Society of Actuaries emphasizes the importance of waiting as long as possible in order to secure more guaranteed lifetime income in retirement and to help hedge against outliving assets. All things considered, many people on the brink of retirement are not ready for their golden years. “With the challenges in the housing and financial markets over the past few years, coupled with the fact that people are living longer, many baby boomers are finding themselves unprepared to maintain their lifestyle in retirement,” said Anna Rappaport, president of Anna Rappaport Consulting, in a press release about the survey. The Society of Actuaries survey was based on online responses from 1,006 individuals ages 45 to 70. The group is currently holding a “Living to 100” symposium in Orlando.
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