Here’s an interesting article I’d like to share from PLANADVISOR. As retirement draws nearer, baby boomers are asking vastly different questions than their younger generation cohorts.
There are many issues that are not “one size fits all,” and can differ by generation, says Rich Rausser, senior vice president of Client Services at Pentegra Retirement Services.
Rausser told PLANADVISER he thinks Baby Boomers (born 1946 to 1964) think about retirement very differently from other generations since they are closer to it. Thinking shifts from ‘How much should I save?’ to ‘Do I have enough?’, he explained. More complex issues come into play, such as timing of distributions, tax planning, when to take Social Security and whether to take one source of income at a time or blend income sources.
Rausser suggested plan sponsors focus on educating Baby Boomers about distribution options and strategies. Plan sponsors should make sure participants understand the distribution options for their retirement plans. But, beyond the form of payment, Baby Boomers need education about how to time distributions and tax planning. Plan sponsors can use plan advisers, providers or other experts to deliver this education.
According to Rausser, Generation X (born 1965 to 1976) are in their peak earning years, but they have other financial obligations tugging at them, so they face tough choices about saving for retirement. Some still have young families and are looking to buy a house; others are saving for or getting ready to pay for children’s college expenses. Many are concerned they are jeopardizing their long-term retirement success by not accumulating savings for themselves.
To read more, visit the rest of the PLANADVISOR article here.
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