Baby boomers are putting their retirement savings in jeopardy

Americans are more financially prepared for retirement than they were just a few years ago, recent research found.

One of the reasons for that good news might be bad.

Many people approaching retirement age today are heavily invested in stocks, potentially leaving their savings vulnerable to the next recession.

“If there was a market downturn, they could lose a significant chunk of what they’ve worked so hard to save,” said Meghan Murphy, the vice president of thought leadership at Fidelity.

Roughly half of baby boomers have their 401(k) plans invested in riskier allocations than Fidelity suggests for their age group, Murphy said. (Fidelity recommends having around 54 percent in stocks and the rest in bonds, money market funds or certificates of deposit.)

Eight percent of baby boomers have their entire 401(k) holdings in equities.

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get The Latest Investing Tips
Straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.