Are Baby Boomers well prepared for retirement?

The first wave of post-WWII baby boomers are now zooming past the retirement age the finish line. The Boomer generation spans 18 years from 1946 to 1964, of whom the eldest is now reaching retirement age. Now that many of the older Boomers are reaching retirement age, they are really financially ready to leave the workforce and enter their golden years? The answer is both yes and no. 

Work Into the Golden Years

In the last two years through 2007 to the end of 2008, only less than half of eligible Boomers who could take early retirement before the age of 65 have indeed completely retires. According to a study by the MetLife Mature Market Institute, Boomer survey responses showed that a majority of those eligible for retirement still work full or part time. Many of those eligible for pension found that the economic climate had not yet mature, and the determination to remain in the workforce until the economy gets back on track and their retirement accounts to receive the little extra "padding" from the continuing work years.

401 (k) plays an important role 

of particular interest in the decision to retire early or were not 401 (k) or other retirement account. In the last two years, and especially in 2008, as many retirement savings accounts massive drops in value because of stock market collapse. About half of those surveyed Boomers said that they were behind in their retirement savings, and only a small percentage that they had achieved their retirement goals. 

Economy Turned Retirement haywire

when comparing the MetLife study from 2007 to 2008 survey shows that in 2007, 15% of those who would reach the early retirement age of 62 planned full pensions. A year later, only 11% of that small percentage actually achieved full pension, while the rest continued to work because of the economy. These workers were confronted with a decision to continue full time or part-time work due to sudden changes in the economic climate and the value of their retirement savings. Most of the older generation of Boomers says they will now full pension at the age of the 66th

But when the same questions were asked of the older Boomer generation, their response was evident that most will not take early retirement at the age of the 62nd Rather, most say they plan to full pension at the age of the 64th The mood of the younger Boomers is that they have more time to get their retirement accounts in shape and able to retire.

As Nest Eggs is Boomers Dependent? 

While most retiring Boomer workers will collect social security benefits, what are some of the additional retirement savings or investments, Boomers will depend on after retirement? 

    * 401 (k) - About 54% of those surveyed Boomers said they have a 401 (k), where they contribute towards their retirement. 

     * IRA - also around 51% said they have an IRA in addition to or instead of a 401 (k) retirement savings. 

    * Defined Pension - Less than half, 49% said they would have a defined pension from their workplace. 

     * Stocks, bonds, mutual funds - 40% of those surveyed own stocks, while another 38% have invested in unit trusts. Fewer, only 27% own bonds for their pension. 

     * Annuities - 37% of Boomers have purchased annuities that will pay them a regular pension income. 

Like many early-generation Boomers experiencing economic climate can play a major role in the decision to retire. A retirement savings should cover a broad range of financial products providing growth while protecting the value of economic downfalls.