If your Boomer clients are pondering early retirement, one survey conducted by the Washington, D.C. based Urban Institute provided into the implications of such a decision and the benefits of retirement. 'By working until age 67 instead of retiring at a typical worker could gain about $10,00 in annual income at significantly reducing the likelihood of falling into poverty ages,"according to the study. That's because those who delay avoid early retirement penalty custs to their Soical Security defined-benefit pension benefits. They also can savemore and they'll need to rely on savings. The value of working longer especially important for African Americans, one of the groups focused on. For instance, 22% of African American Boomers are to have incomes below twice the poverty level at age 67, complete of Caucasians Boomers. The study found African Americans are likely than Caucasians or Hispanics to work past age 65.
Before Seniors and Boomers draw on their home equity, they may consider other options and determine whether the decision could jeopardize their financial security. Bankruptcy filings by Americans increasing at a faster rate than the general population according to a study by researchers at the Administrative Office U.S. Courts. Increasing amounts of mortgage debt and rising high costs contribute to the higher incidence of Boomer bankruptcies in recent yers, more Seniors have been borrowing against their equity, instance, 21% of seniors had such debt by 2000.
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