Boomers are frequently described by demographers as the wealthiest in American history. According to the Boston College Social Welfare Institute, they are also expected to be the recipients of the largest ever wealth transfer from their parents, some $30-$40 trillion projected over the coming 40 years. By many accounts, Boomers should be in good financial shape as they move into their 60s. However, this description belies the diversity of wealth within the cohort and the lack of plans many have made to prepare for their significantly increased life expectancy.  Then too, many Boomers' parents are living longer and their trillions of inheritance dollars have evaporated with their longer than anticipated life spans.  In addition, the current worldwide economic crisis has Boomers facing pension terminations, skyrocketing healthcare costs, and uncertainty about government programs such as Social Security.

Many Boomers have not planned well for the financial realities they will face as they head into retirement — whatever the term “retirement” might mean for them.  Roughly 50% do not have a will, 60% do not have a healthcare directive, and 60% do not have a rudimentary financial plan. In addition, according to the Retirement Confidence Survey of 2006, 50% of individuals age 55 and older had saved less than $50,000 for retirement.  Now with the recent, dramatic decline in the value of both their homes and stock market investments, many Boomers are facing an even more precarious future.

For some, the solution could involve cutting expenses and reallocating money into savings.  However, for most Boomers this will require a significant change in their financial habits since most have very low savings rates relative to previous generations. As for cutting expenses, a study released in the summer of 2008 revealed that workers, on average, who are seven years from retirement (Boomers in their late 50s) will have to cut their standard of living by about 24% to ensure they don't run out of money in retirement — and that was before the financial industry meltdown in fall 2008.

A growing reality for many may be to work longer than planned. While this option is "unpalatable" for some Boomers, there are actually some unexpected benefits to a prolonged work life, including the ability to make more money and delay the time before accessing retirement income plans. Social Security benefits will also be higher for those who stay in the workforce longer.  Then, too, work has value beyond just the income and healthcare benefits it provides.  Work that is meaningful and allows for individual flexibility can provide a sense of purpose and social involvement.  Society, as well, could potentially benefit from the continued expertise of Boomers in the workforce — perhaps even helping to redefine and transform the meaning and structure of work, not only for aging Boomers but for all generations to come.