Boomers Struggle To Define Retirement (NAPSA)—If you or someone you care about is among the nation’s estimated 76 million baby boomers entering or preparing for retirement, coping with the fallout from the subprime mortgagecrisis that began in 2007 and triggered the Great Recession is probablystill an issue. As the crisis cut into boomers’ net worth and lowered the value of their homes, their confidence in = E q if <—_— - = Ze L Sea Z achiev- ing a personally satisfying retirement dropped significantly, according to the Bankers Life Center for a Secure Retirement. Today, only 37 percent of boomers are certain they will have a personally satisfying retirement, down from 44 percentbeforethecrisis. Even before the crash, middle-in- come boomers were grappling with a “new retirement” stemming from changes to their retirement programs, as employers shifted away from defined benefit plans such as pensionsto defined contribution plans like 401(k) plans. With their confidence shaken, boomers are furtherredefining retirement. Whatdoesthis “new”retirement look like? Boomers surveyed by Bankers Life say they have lowered their overall expectationsfor financial independence in retirement, compared to beforethecrisis. ‘Thestudy reportsthat only: + 34 percent expectto retire debt free 19 percent expect to pay off their mortgage 16 percent expect to pass an inheri- tanceto heirs. So what can you do to help restore your confidence that a personally satisfying retirement is possible? Here are three goodideas: 1.Understand what your retirementreally looks like. Look to increase your financial independenceby: Paying off debt: Debt payments should ideally be no more than 10 percent of Most baby boomers are worried about having enough moneyfor retirement—but you may not have to be if you consider these ideas. your income whenyouretire. Working part-time: Whether you work full-time, part-time or seasonally, em- ployment incomewill relieve pressure on yourother sources of income. 2. Plan for the unexpected. Only 28 percent of middle-income boomers have built up an emergency fund since the start of the financialcrisis. Plan for any unexpected costs that can arise in retirement, such as long-term care or criticalillness. 3. Allow an expert to support your investment plan. One-quarter of middle-income boomers report they no longer invest because ofthe crisis. Whether you want to resumeinvesting or simply create a savingsplan, consider working with a financial professional, especially if you don’t think you have the financial resourcesto live comfortably in retirement. Learn More Visit www.BankersLife.com/TopTips3 to download a free booklet on Top Tips for Retirees, including Reducing Debt in Retirement, Medicare Enrollment, Managing Prescription Drug Costs, and more. For further facts about achieving financial security in retirement, visit www.BankersLife.com.
