47 percent of boomers may run out of retirement funds

By Gary Linnell

ProWEB Wire (Industry News)


The Employee Benefit Research Institute reports that nearly half of boomers between the ages of 56 and 62 will not have enough funds to cover basic expenses and uninsured health costs in retirement.

While this figure is slightly discouraging, it is compared with the 2003 rate of 59 percent of boomers who ran the risk of running short of money in retirement.

According to the EBRI, the increase in financial stability since 2003 is due in part to more extensive use of policies that govern work-based retirement plans -- such as automatic enrollment in 401(k) plans and automatic increases to 401(k) contributions.