Average Baby Boomers Looking to Severe Reduction in Lifestyle?

Ben Stein, conservative commentator for CBS Sunday morning, started my day with a depressing piece on the lack of savings held by the Average Baby Boomer (“ABB”– roughly people born between 1947 and 1964). He claims that the ABB has only $50,000 in savings beyond equity in their homes, and if we add that in, the number rises to only $110,000.

With Social Security providing only 30-40% of the money the ABB needs to maintain their lifestyles, he sees an unhappy retirement for most Baby Boomers.

This is exacerbated by all the borrowing we do before we retire. The money we borrow raises our lifestyle and expectations, but the loans also raise our obligations for repayment.

Limiting your debt is always a good idea, but maybe even more so if you are an ABB!

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