Q: I am concerned that I have not saved enough for retirement. What can I do?
A: You are not alone. According to a report by the Employee Benefit Research Institute, half of early-cohort baby boomers (age 56-62) are in danger of running out of money for basic retirement expenses.
John Bogle, founder of mutual fund giant Vanguard Group, aptly describes the situation as an “impending train wreck.”
Here are a few important steps to take:
* Know where you stand. According to the EBRI, only 46 percent of all workers have attempted to estimate the savings necessary to fund their retirement. A retiree would need a nest egg of about $600,000 to generate an inflation-adjusted annual income of $30,000 for 25 years; yet the average Boomer has saved only $70,000. Even if the answer is not agreeable, ask the question. Most mutual funds and financial websites offer free retirement calculators to assist in setting a savings target.