Have baby boomers saved enough for retirement? Short answer ... no. But that also depends on the baby boomer.
How much an individual needs to save is partly a question of taste, according to the Urban Institute. Its latest Retirement Policy Program brief reports it's hard to say whether boomers have saved enough because the cost of retirement is dependent on many wild cards - like health care cost inflation, home equity and long term care necessity. "Most evaluations of retirement well-being compare retirement income to earnings received at younger ages, but well-being really comes down to how much retirees want to consume," the report says.
The Urban Institute's latest brief is based on a roundtable discussion of experts in retirement, aging, health and long term care policy who summarized what legislative action should be taken to address the needs of retiring boomers:
- Rethink public policies that encourage early retirement like the Medicare secondary-payer rule that requires employers to cover most health care costs.
- Encourage volunteer opportunities.
- How much adults need to save for retirement should be based on consumption, not income replacement. Savings requirements vary by income, health care needs, and the share of preretirement income replaced by Social Security benefits.
- National health care reform must consider the needs of older adults.
- Government should do more to help seniors best use the benefits that programs offer.
- Public policy should recognize the diversity of the older population. Rather than provide new entitlements to everyone, assistance should be tailored to the needs of different income groups.
