FIGHT BACK!  BY DAVID HOROWITZ

The Future for Boomers
        
        As baby boomers approach 50, they're beginning to real- ize that retirement is not that far 
away. But, according to a  Princeton University/Merrill Lynch study, boomers as a group  are 
saving only about a third of the money they will need to  maintain their standard of living after they 
quit working.
        Part of the reason is that the boomer generation grew up  in an age of rising expectations. 
There was a general as- sumption that incomes would go up and up, there would be time  later to 
save and, whatever else happened, there would always  be Social Security there to fall back on. 
Meanwhile, there  were the needs of growing families to be met -- homes of  their own, college 
funds for the kids and the trappings of  the good life.
        Now, reality is setting in. The median annual income for  retirees living on Social Security 
today is only $10,200.  Even those with retirement plans are finding that living on a  fixed income 
is difficult as prices go up and income does  not. In addition, the cost of health care continues to 
rise,  and there is no guarantee that national health care reform  will solve that problem by the 
time the boomer generation is  ready to retire.
        Another factor is that Boomers generally are not very  sophisticated investors. Many have 
put all their retirement  savings in conservative investments like money market funds  and 
government bonds where returns have been consistently  lower than stock funds. Others have 
gone to the other ex- treme, risking their retirement savings in high-flying ven- tures that can go 
bust at any time. At the far end are vic- tims of fraudulent investment schemes in oil and gas 
specu- lation, rare gems and coins, and similar scams.
        Experts say that if boomers knew how to diversify their  investments for maximum safety and 
return and had the  discipline to save regularly, they would have the money they  need to keep up 
their lifestyles in retirement. It's not that  they have to become financial experts themselves, but 
they  should at least take the time to understand their own in- vestments and seek out guidance 
from reliable financial  advisors.
        An important part of the process is to plan ahead. Very  few people actually know what their 
annual income will be at  retirement age. They have a company retirement plan, but it  may have 
been years since they reviewed that plan to see how  much money is actually going into it each 
month, how much is  there right now, how much there will be 10 or 15 years from  now and what 
that means in terms of monthly income. If it's  not enough, then there is still time to increase their  
payroll deduction and add to their retirement fund.
        The outlook for boomers is not all bad. According to the  Congressional Budget Office, they 
are better educated, enjoy  a higher average income and have more accumulated wealth than  
their parents. With more women entering the work force, there  are more two-income families with 
both husband and wife  putting money away for their retirement. Insurance companies  also report 
record sales of retirement annuities.
        The good news is that there is still time to plan for  retirement. But for the boomer 
generation, time is running  out, and every year that goes by makes it more difficult and  more 
expensive to build an adequate retirement fund.
        If you have any questions or comments, please write to  David Horowitz in the Consumer 
Forum+ (go FIGHTBACK). COPYRIGHT 1994 CREATORS SYNDICATE, INC.