Tuesday, December 28, 2010
CHICAGO (AP) -- Many baby boomers are facing a personal finance disaster just as they're hoping to retire.
Starting in January, more than 10,000 baby boomers a day will turn 65 and that pattern will continue for the next 19 years.
Olivia Mitchell of the University of Pennsylvania calls the situation "extremely serious." She says baby boomers "have not saved very effectively for retirement and are still retiring too early."
There are a number of problems facing the boomers.
The traditional pension plan is disappearing and many stock plans have been posting low returns. Also, many boomers who had banked on their homes are finding the crash in housing prices has slashed the value of their home.
There are other signs of coming trouble: Many boomers have too high a mortgage debt; Others are receiving less Social Security money because of early retirement; And health care expenses continue to soar.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
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