According to an article in U.S. News & World Report, baby boomers will have a different retirement situation than those in previous generations. In some ways, the changes are good – such as living longer and staying active, but others such as being a “sandwich generation” and retiring with debt can pose challenges for those who have not saved enough. Here are the examples provided in the article:

• Living longer – life expectancy continues to grow, meaning money saved for retirement will have to last longer
• No pension – 40 percent of workers in 1975 received a traditional pension. That number shrank to 17 percent in 2006. More employers are replacing traditional pensions with 401(k)s, which leaves more of the responsibilities of contributing to retirement on the shoulders of the employees.
• Managing investments – the shift from traditional pension plans to 401(k) plans means that participants have to manage their 401(k) plans themselves or hire outside professional help to do it for them. Employees need to be aware of their asset allocation so they don’t risk running out of money during retirement.
• Required minimum distributions – Many seniors aren’t aware that the government requires that they must begin withdrawing from their 401(k) at age 70 ½.
• Part-time jobs – more people will be working during their traditional retirement years. Some will do so because they need the extra income while others will
• Staying active – baby boomers aren’t content with just sitting around doing nothing in retirement. Many see it as a time to travel, volunteer, take a class, spend time with grandchildren and do things they didn’t have time to do when working.
• Sandwich generation – many baby boomers will face the challenge of having to send kids off to college while also taking care of aging parents, in addition to putting money away towards retirement.
• Lower Social Security benefits – Those born in 1960 or later are not able to collect full social security until age 67 compared to those who were born before 1937 and could collect full benefits at age 65.
• Retiring with debt – In 2007, nearly 63% of U.S. families headed by someone 55 or older still owed money on their home, credit cards or other debts which is up 10% compared to 1992. This leaves less money for discretionary expenses in retirement.
• Diverse locales – More seniors are choosing to live in diverse communities instead of seniors-only communities.

These statistics show how important it is for employees to save for their retirement. NADART offers a number of online calculators to show participants how they can save for retirement along with communication materials to increase participation. If you’d like to learn more about NADART’s retirement plan products and features, please contact a NADART Representative at (800) 462-3278 ext. 7254 or e-mail nadart401k@nada.org.