Study: Boomers' retirement funds lacking

Nearly one-third of baby boomers ages 51 to 61 are at risk of not having enough in savings to finance a comfortable retirement, according to a study by the Center for Retirement Research at Boston College.

‘‘We just don’t believe people are saving too much,’’ said Alicia H. Munnell, director of the center.

A recently published academic study looked at the retirement preparedness of Americans who were in their 50s in 1992 and concluded that at least 80 percent had more than enough for retirement. Others have argued that Americans may be saving too much.

The Boston College study evaluated the same 51-61 age group, but looked at their finances in 2004, and found 32 percent to be ‘‘at risk’’ for not being able to maintain their preretirement standard of living in retirement.

The difference between the results, the center said, has to do with changes in the environment:

Americans now must wait until they’re older than 65 to collect full Social Security benefits.

Lower interest rates mean they’ll probably collect less on annuities and other investments.

And many of today’s workers do not have pensions, as earlier generations did, but rely on worker-funded 401(k) retirement accounts.

Munnell said Americans have two choices: save more or work longer.
(AP)