Baby Boomers Are Facing a Financial Crunch

Young boomers are running out of time to save and facing a serious financial crunch. Social Security benefit expectations are currently in question as to whether or not young baby boomers will have enough money to cover even basic expenses in retirement based on what they have currently been able to save and invest. The boomers need to plan for long retirements in addition because modern medicine and a more health conscious society are resulting in longer life spans. The average American woman today can expect to live until 80, up nearly five years from 1970. Those who make it to 65 can expect to live until nearly 84.

To just turn the heat up a notch or two record low mortgage interest rates and soaring home values have caused Americans to refinance their mortgages in record numbers. The result of this will be that many Americans will be forced to carry their mortgages well into retirement. There may not be any money to place into retirement accounts if this is indeed the case. As a matter of fact once a boomer finally retires they will have to count on having enough money to live off of for 30 years or more. Even if a person had somehow managed to save a quarter million dollars the cold facts are that to make it last that long, they would only be able to live off of about $10,000 per year.

There is only one possible solution and that is for young boomers to save even more money. This might be nearly impossible due to the fact of rising college tuition costs f

r their children and a more than sluggish current economy. So baby boomers have to deal with a serious financial crunch that is looming with their retirement. The baby boomers are faced with one of two evils, cut their spending now or reduce their standard of living upon retirement. There is no doubt that baby boomers are in nothing less than a financial crunch with all of the elements stacked up against them, an extended life expectancy, caring for aging parents, children in financial need, the Social Security and Medicare programs in crisis. All of these factors could indicate that baby boomers will not be able to afford to live the second half of their life. It is in 2017 when havoc is expected to really take its toll as that is when the largest number of baby boomers will be retiring. These are people born between 1946 and 1964.

Baby boomers make up a good majority of the live for today generation, the ones who have overindulged for so long that it is extremely difficult now to look ahead to a future that could be possibly quite bleak. Within the next two decades many people will believe that they are ready to retire but once they start adding up the numbers a harsh realization will come over them and this will be a realization that they are not ready for because when their parents retired they received pensions, Social Security, and their house mortgages were paid off. Unfortunately, that will not be the case when baby boomers retire

Les Conner is an internet network marketing coach teaching the most effective methods for lead generation online. Download his Free e-book and learn how professional network marketers attract prospects while building their prospect list.