Baby Boomers Spending Retirement Savings Fast

You don’t have to listen to the news to know that the prices of nearly everything have increased. If you bought groceries, gas, or any other necessity, you felt the pinch in your bank account. But if you read or listen to the news, you have undoubtedly heard that inflation rose to 9.1% last month, reaching its highest point in 41 years. Higher prices have caused some to dip into savings (assuming you had funds set aside for long-term purposes) and retirement accounts. Although not ideal, this might be okay for the short term, assuming you will have time to rebuild your savings accounts. However, if you are nearing retirement, this ‘dipping’ could hurt your ability to live comfortably in retirement. This article explains that based on research from two different organizations, people retiring with accounts such as a 401(k) —particularly baby boomers (those born between 1946 and 1964)— are prone to quickly spending down their retirement savings. And according to a new study from the Center for Retirement Research, they might outlive their savings. This second article suggests how employers can help employees manage financial stress and associated anxiety. If you’re hoping to retire soon, this article offers five suggestions to help individuals prepare for retirement in the next 12 months. Always seek the advice of professional financial advisors.