I’m failing to see why boomers need these high numbers in savings, stocks, etc to survive … especially ones with pensions who are just a few years from SS (assuming it pays out the retiree’s entire life).
I think a boomer with pension(s) can prudently “retire” on <=$1M, that is, IF they don't try to retire before at least age ~57 (preferably 59.5).
A very experienced former worker can ALWAYS do something to make a little money ... even working from home (at least I can). LOTS of current "retirees" have their hand in a pot somewhere. Today's crop of boomers don't even own rocking chairs!
I couldn't spend $5M if I tried. WTH do I need/want that costs that much ... even over the course of 20+ years? Of course, this statement assumes food (ESP fresh produce) will NOT triple or quadruple in price in my lifetime.
I went to a "weightlifting-type" aerobic fitness class for the first time this past week and this large room was FULL of 60-somethings. And the majority of them were fit as a fiddle (both male and female).
Just let me purchase a modest "vintage" 1950's house with hardwood floors (currently $175K to $350K) within 2 mi of a major ski resort (ex: S. Lake Tahoe) and a season lift pass (purchased the prior summer for half-price).
I just learned from one of my fitness instructors (going on 70) that Snow Valley up in Big Bear Lake offers FREE sking to skiers over 70. He and his spouse just came back from two days on the slopes where he stated to the class that he planned to ski more often after he turned 70 :=]
As a "retiree," even if I had a little 15-hr week paying "gig" shuffling court papers or the like, life really doesn't get any better than that and certainly doesn’t cost anywhere NEAR $5M . . . or even $2M, for that matter. There’s a LOT of biz functions I could perform as an “independent contractor.”
Not everyone has a desire to travel the world. I know several boomers who “inherited” RVs and boats in pretty good condition. For many, that is enough “entertainment” (along with owning a road-worthy vehicle).
Perhaps some Piggs are stating that “millions” or “$5M” is needed for a couple to retire. If that is the case, they often have two or more pensions between themselves, so no … I don’t think they need $5M.
I think taking a lot of risk to try to accumulate that much is unrealistic and overkill, unless one is presently young enough (~20-30-ish) and has time to recover from investment mistakes.
The above presupposes the retirees did NOT overextend themselves throughout life on RE loans and other forms of consumer credit, are retiring with a paid-off residence OR will sell their residence and buy a retirement residence with their sales proceeds and have pension allowances which greatly assist with healthcare premiums OR qualify medically for a low-cost HDHP.
