Baby Boomers Cutting Back On Retirement Saving, Expecting To Delay Retirement

According to a recent article in the Wall Street Journal, increasing numbers of baby boomers are no longer contributing to their retirement plans, and are expecting to delay their retirement.

The gradual demise of defined-benefit plans, and uncertainty surrounding Social Security have made 401(k)s, 403(b)s, IRAs, and similar defined-contribution accounts the primary source of retirement support for most boomers. Numerous studies have already shown that the vast majority of workers, especially baby boomers, are not contributing enough to these plans to provide for a traditional retirement at age 65. The new trend toward forgoing contribution to the plans altogether is therefore all the more alarming.

Nonetheless, the ongoing economic downturn is making it harder to meet current living expenses such as rent or mortgage payments, food, and gasoline. For many, there simply isn’t anything left over to save.

With neither significant savings nor a traditional corporate pension to count on, tens of millions of baby boomers will be depending on Social Security to save them from abject poverty. Which was, of course, the reason it was created—and why it needs to be preserved.