The Changing Retirement Landscape

The Changing Retirement Landscape

At age 62, “most”   have only saved 30% of the money they need to sustain their remaining life expectancy.  However, for most people, if they continue working and retire at 70, their 401(k) balance increases the value of the average 401(k) by 86%   Source: Boston College’s Center for Retirement/Greenwich Associates

Investment Landscape Has Changed

Because real interest rates have fallen in last 30 years, investors are being forced to take more risk by investing in mutual funds and equities than their defined benefit managers had to in an effort to generate returns necessary to support necessary retirement income.

Sources: U.S. Census Bureau, current population survey (1962-2012; US Social Security Administration (2013).  Boston College Magazine.

Read more:  Picture It, Boston College Magazine.