Retirement looms: time nervous (BusinessWeek)

Let the retirement parties begin: the oldest members of the demographic wave of 1946-64, known as the 65th boom this month here.

There to discuss should celebrate how this generation of 79 million members, at least as regards their finances. In a may 2010 survey Pew Center, 57% of baby boomers said their economic situation has deteriorated since the beginning of the recession in 2007. It is nine points higher than the national average and worst than any other generation interviewed.

Baby boomers, particularly the oldest of the group are finishing their work and save just years after House abandoned, global markets dropped values, and the U.S. unemployment rate has doubled. It was a blow to wake-up call for those who have not been sufficient retirement saving, financial planners say. "It was an unfortunate reminder that you can't just save and the market will do the rest for you," says Marnie Aznar, senior financial advisors Aznar in Morris Plains NJ

Even though the economy had not went south, boomers challenges that often their parents could avoid. Company pensions are rarer, meaning that many boomers are not a source of retirement that some people in previous generations were awarded funding. "Few people realize how precious was for those who withdrew in the past," says Steven Medland, principal, TABR Capital Management in Orange, Calif.. Medland believes that a customer the amount of $80,000 per year is the equivalent of a $ 1.6 million nest egg.

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Women's average age 65 can expect to live even 20 years, and the average 65-year-old man has a life expectancy of nearly of 18 years. Americans are living longer, 7.5 years on average, than in 1970. Longer life expectancy means retirees can benefit more from their retirement, but he also retirement much more expensive.

Boomers "are a generation of people who are very active, says Elaine Scoggins, customer experience Director at Merriman, a financial company in Seattle." More physically active you are, you'll be able to spend money and travel. You plan to do this. »

Not all the financial news for baby boomers were bad. Their young adult generation had three decades or more to benefit from rising prices of real estate, economic growth and increasing stock values. According to Bloomberg, 1967, when Baby Boomers oldest turned 21 in 2010, the standard & Poor 500 (NYSE: MHP - News) stock index provided a total return, including dividends, 5,785%, and 9.7% per year. (Those who earned and leave a decade sooner is better: someone who invested between 1957 and 2000 achieved performance 13,518% or 12 per cent per year.)

The recent financial crisis has fear of many boomers and rightly so. Yet investors who stayed on the stock market took many of their worst losses reimbursed. January 5th, the S & P 500 has reached its highest level since September 2, 2008 - before the collapse of Lehman Brothers and the worst of the financial crisis.

Among the many boomers market bounce "is like a collective sigh of relief," says Medland. Nevertheless, significant risks remain, in stock and bond markets. "Unfortunately, the market can be very picky," he said.

To learn more about the many financial challenges facing baby boomers — and how to avoid - see attached slides.