These Are Baby Boomers' Top 3 Retirement Fears
Retirement can be a daunting prospect on many levels, and it's natural to have concerns about it, especially as that milestone approaches. The good news, however, is that there are steps you can take to alleviate some of those worries as you enter that new, exciting stage of life. Here are baby boomers' top retirement fear, according to a recent Transamerica survey -- and what to do about them.
For 45% of baby boomers, outliving their savings is a major concern. But you can address that in a couple of ways. First, stay invested in stocks during retirement. While you should shift a substantial chunk of your retirement portfolio to bonds to minimize your personal investment risk, you shouldn't dump your stocks completely, because you'll need them to fuel your portfolio's growth even while you're in the process of taking withdrawals against it.
Additionally, be sure to ramp up your retirement savings as that milestone nears. It's easy to grow complacent when you're in the last leg of your career, but the truth is that even a few extra thousand dollars in your IRA or 401(k) could really go a long way. Adults 50 and over can currently contribute up to $7,000 a year to an IRA, or up to $26,000 a year to a 401(k), and the closer you get to hitting these limits during the latter part of your career, the less likely you'll be to deplete your savings in your lifetime.
Source Fool.com
