NEW YORK, NY -- (Marketwire) -- 03/27/13 -- According to financial services veteran Randy Siller, the Boomer Generation is changing the nature of retirement planning -- and not always for the better. Siller points to a recent Reuters report, which suggests that Baby Boomers are "rewriting the rules of retirement" in a number of ways. Some of the specific trends cited in the Reuters article are that Boomers are increasingly prone to living abroad, to embracing digital technology, and to launching their own businesses. Randy Siller has weighed in on the article, offering a few of his own thoughts on the ways in which the Boomer Generation is approaching retirement.
"A few areas of concern are that Boomers have been borrowing more, are providing more financial support for their kids, and are not taking into account that they are living longer," comments Randy Siller, in his new statement to the press. He goes on to illustrate some particular challenges that Boomers are facing as they enter their retirement years.
"With interest rates decreasing for several decades now, and with house prices rising up until 2008, refinancing mortgages was easy," explains Siller. "It was also easy to pull out additional funds -- that is, to increase the amount of the mortgage, and keep the payments the same (due to lower interest rates). The excess funds could be used to buy cars, go on otherwise unaffordable vacations, and so forth."
Continues Siller, "Now, with larger mortgages on homes that have decreased in value, some retirees will be stuck in those homes until housing prices come back."
Siller continues by noting some further trends shaping the Boomer Generation and its approach to retirement. "In addition, over 90 percent of Boomers say they are helping their children, as the kids face such a tough job market," says Siller. "To the extent that help entails having the children move back in temporarily, that's not a big deal. However, where children are trying to live on their own and their Boomer parents are supporting that financially, it can have a significant impact on the Boomers' own retirement plans. It's important to have an understood time frame for when that support will stop."
Siller points to one final area of concern for Boomers as they consider retirement. "Finally, the third leg of the stool that make retirement more difficult is the fact that we are living longer. Men are now living to almost 76 on average, while women are living, on average, to almost 81. Recent studies show that more than half of older American's underestimate their likely longevity."
Concludes Siller, "Baby Boomer's need to sit down and create a realistic plan for retirement, taking into account their longevity, getting adult children to stand on their own feet financially as soon as possible, and getting out from under large mortgage debt when the housing market bounces back."
"For most, it is not too late, but planning must start now," cautions Randy Siller.
Randy Siller is a veteran of the financial services industry, and a founding partner of the firm Siller & Cohen. For more than two decades, the firm has offered wealth advisory services to families, individuals, and businesses across the country. Randy Siller has been cited in numerous publications, including Time and Fortune.
Registered associates of Siller and Cohen are registered representatives of Lincoln Financial Advisors Corp. Securities and advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer (Member SIPC) and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. Siller and Cohen is not affiliated with Lincoln Financial Advisors Corp. CRN 201303-2078377
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