Recent studies show that too many Baby Boomers are aging faster than their savings for retirement is growing. Many have placed a high priority on educating their children; others have faced issues with their own aging parents needing care. Now in their 40s and 50s, Baby Boomers have a lot of catching up to do, according to Phyllis Bernstein in a recent issue of the Journal of Retirement Planning. Retirement planning as an industry so far will be dwarfed by what lies ahead with the Baby Boomers, and now is the time to get Baby Boomer clients in gear to save for retirement. How? Bernstein uses the “Cup of Coffee” example. Today, you can buy a cup of coffee for about $2.00 at Starbucks. That same cup of coffee is expected to cost $4.36 in 2030—the year that today’s 40-year-olds will want to retire. Think about what that will do to retirement savings, she notes.
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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.
Read this article from CCH’s Journal of Taxation of Financial Products.