In her book, The New Retirement, noted economist Dr. Sherry Cooper, poses the question: “Have Boomers saved enough for retirement?” She says that lower and middle income Boomers are set – because the government pensions will replace 60 to 90 per cent of their income. But surprisingly, affluent Boomers, families with incomes over $140,000 may have trouble – because according to Cooper’s numbers you must save $25 for every dollar you want in retirement.
“That’s a lot of money – some would say only $20, but nevertheless that would mean that basically, if you want $50,000 pre-tax in retirement from a portfolio, you’re gonna have to have a portfolio that is at least $1,000,000. So that’s why I say that many affluent Boomers haven’t saved enough for retirement.”
“Keep working. The overwhelming majority of affluent Boomers say they like their work, and they also say that they want to work in retirement, which begs the question ‘What is retirement, anyway?'”