Lorraine R. Decker, CLU, ChFC, MSFS, Decker & Associates, Inc. President

n the 1990s, Decker Consulting clients were on the cover of Fortune Magazine headlined, Will You Be Able To Retire? At that time, Ken Decker, CPA/PFS, CFP advised the editors, “Our calculations indicate the average baby boomer is saving at a rate that would allow him to retire at age 72.” Over the years we have seen the US personal savings rate erode to the present negative percentage rate. Therefore, whenever an article talks retirement, we are curious as to the findings.

We call to our clients’ attention the official study from the Center for Retirement Research at Boston College —

Nearly 45% of US households are at risk of being unable to maintain their standard of living in retirement, according to a new retirement index from the Center for Retirement Research at Boston College. Younger workers are more vulnerable, with nearly half of households at risk of falling short in retirement.

"Even if people retire at age 65 and annuitize all their wealth, including the receipts from reverse mortgages on their homes, 43% will be at risk," Boston College researchers state. "But the situation is not hopeless. If people choose to work longer, even just two years, and save 3% more, they can substantially improve the outlook for their retirement security." Benefit.News.com June 8, 2006

This doesn’t sound too bad. Half of the people who retire will run out of money before they run out of life. OK, so what’s the fuss? One of our good friends, Don Reiser always says, “The devil is in the details.” So get ready for a little heat!