We Asked 4 Financial Experts: What Are the Biggest Threats to Boomers’ Retirement Savings?

Core Insights - The primary concern for baby boomers entering retirement is longevity risk, which poses a threat of outliving their savings due to increased life expectancy [2] - Rising healthcare and long-term care costs are significant financial threats that can deplete savings if not planned for adequately [3] - Inflation is eroding purchasing power, particularly affecting those on fixed incomes, with the U.S. dollar declining approximately 60% when priced in gold this year [5] - Market volatility presents a unique challenge for boomers, as they have less time to recover from downturns, exposing them to sequence of returns risk [6] Group 1: Longevity and Financial Planning - Longevity risk is identified as the most significant threat, with many retirees facing 25 to 30 years of retirement, necessitating a long-term financial strategy [2] - Retirement planning must account for the need for income over extended periods, emphasizing endurance rather than short-term gains [3] Group 2: Healthcare Costs - Healthcare is described as a "silent budget killer," with long-term care being a critical financial risk that many fail to prepare for [3] - Approximately 70% of individuals over 65 will require long-term care, yet less than 10% have insurance for it, highlighting a significant gap in preparedness [3] Group 3: Inflation and Market Volatility - Inflation is compared to "termites" that gradually erode purchasing power, with even moderate inflation posing a risk to fixed incomes [5] - Market volatility impacts boomers more severely than other generations due to their limited recovery time from market downturns [6]