LITTLE ROCK, Ark. (KTHV) - THV's Craig O'Neill is betting that he can make you say "not now," just by asking: What are your retirement plans?
Retirement is a subject we all need to consider. However, like the majority of Americans, many of us are not quite ready for it. This is especially true for the baby boomer generation, who have not saved near enough to take it easy.
Approximately 10,000 baby boomers (born between 1948 and 1964) are reaching retirement age every day. But, this group is not retiring. In fact, the average retirement age has been pushed back by about four years.
Blame it on better health, but also blame it on boomers not being ready.
The baby boomers were the first TV generation. They were raised in a time of impulse buying and self-gratification, and that has translated to a large portion of the population not ready for their golden years.
According to a USA Today report from December 2011, 54 percent of working Americans have a savings of $25,000 or less. Led by the baby boomer generation, a growing number have given into impulse buying and its ensuing debt.
Because of the recession of 2008, retirement-aged Americans now work five years longer than the normal.
Social Security is not the answer. It wasn't meant to be. John Barnes, of Raymond James Investments, also a baby boomer, told us that Social Security barely takes care of a family's needs after age 65.
It was established to help aid Americans in their retirement and was created when the life expectancy was about 66 years of age. Maria Reynolds-Diaz, state president of AARP, told us that, unfortunately, 37 percent of Arkansans rely on Social Security as their sole source of income. She did, however, reassure us that Social Security was safe... For now.
Health issues are also part of the equation. Most families will be confronted with medical costs between $200,000 and $500,000 after age 65. Medicare and Medicaid are not the answer here either. They do not cover these costs.
Based on the AARP check list, we have prepared five easy steps you can take to get ready.
1. - An appealing vision. We make elaborate plans for weddings and vacations, because we have an appealing vision of how we want those events to turn out. And so it is with retirement. Maria Reynolds-Diaz recommends a journal, where you write out what you want your retirement to look like.
2. - Get out of debt. Reynolds-Diaz points out that debt is the biggest infringement on saving that retirees or hopeful retirees face. She suggests we take care of the smaller debts first.
3. - Come up with a plan to achieve that appealing vision you created in step one. How will you get to that lake house, buy the golf club membership, or just sit on the porch paying your bills. Financial experts tell us, it takes savings of 1.1 million to live on $50,000 a year. Again, remember. . .social security is 25% of retirees savings.
4. Stay connected. As you approach retirement maintain your membership in professional organizations, civic clubs, church, athletic leagues. In our THV Extra, we talked with Gus Bower, a semi-retired baby boomer whop has a Monday night Music Club.
5. Stay healthy. It is paramount retirees eat healthy foods and maintain workout programs. This is the only way to keep those costly medical surprises under control.