Retirement Issues for Baby Boomers

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Retirement Issues for Baby Boomers

• Longer lives
• Retirement Income Sources
• Changing Nature of Retirement Funding

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Retirement Issues for Baby Boomers

• Women Retirement
• Individual Responsibility for retirement income

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Longer lives

• Increased life expectancy
• Earlier retirement
• Retirement phase can be 30 years

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Longer lives

• Women
• Over 1/3 married women widowed within 10 years of
  retirement
• 7 out of 10 baby boomer women will outlive
  husbands
• Divorce

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Poverty Age at Widowhood
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Reasons for Early Retirement
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Retirement Income Sources

• Current retiree5 income sources
• Government assistance
• Personal wealth
• Pension income
• Wage earnings
• Other sources

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Retirement Income Sources
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Pension Income
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Social Security Medicare
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Government Assistance
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Retirement Income Sources

• Social Security-- major source for 3 out of 5
  retirees
• Only source for many elderly women
• Women twice as likely as men
• SS not designed to be total income
• Women and poverty

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Marital status of the population aged 5564, by
sex, 1984, 1994, and 2004
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Womens Expectation of Retirement
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Older Women and Poverty
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Womens Retirement Trajectory
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Changing Nature of Retirement Funding

• Later age for full SS benefits
• Defined benefit
• Defined contribution
• Corporation bankruptcies
• Disappearance of private pensions
• Savings

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Later Age for Social Security
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Defined Benefit vs Defined Contribution
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Corporation Bankruptcies
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Disappearance of private pensions
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Savings
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Savings
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Women Retirement

• Living longer
• Earning less
• Saving less
• Less private pension-type coverage
• Depend more on Social Security

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Women Retirement

• Causes of Financial risks
• Marital disruption rates
• Rising costs of medical care
• Longer life expectancy
• Viability of SS Medicare
• Continuing gender bias

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Sex Ratio 55
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Women and Retirement

• Poverty
• Women as caregivers
• Lower paid jobs
• Gender bias in retirement policies
• Marital status
• Pension portability losses

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Gender bias in retirement policies

• SS system designed on family life assumptions of
  1930s
• Marriage lasted lifetime
• Women worked in home
• Men worked in labor force
• Dually entitled women

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Individual Responsibility

• Early socialization
• Role definition
• Experience in financial planning
• Pre-retirement planning
• Risk taking
• Plan early

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