Unfortunately, 40% of the 78 million baby boomers haven't saved enough to meet basic expenditures in retirement, according to the Employee Benefits Research Institute. That's despite the fact that boomers as a group hold $13 trillion in assets or more than 50% of the personal assets in the United States.

The problem is twofold. First, many people have not saved for retirement. Second, most of those who did save did not save enough.

Let's look at the first point. According to a recent Harris Poll, one of four boomers has no retirement savings at all. No doubt there were many reasons for this: jobs that did not pay livable wages or offer 401(k) plans or pension programs, changes in life status such as marriage or divorce, job loss, medical or familial emergencies, and economic turmoil, like the recent Great Recession.

And among those who have saved, most have less than one-quarter of what they'll need to maintain their standard of living, according to data from the Federal Reserve analyzed by the Center for Retirement Research at Boston College for The Wall Street Journal.

And let's face it, when the stock market took its nose dive from 2007 to 2009, plenty of people pulled the plug on their equity investments. Couple that with falling home values.

Additionally, many boomers are over invested in the equity markets. Nearly a third of people age 60 and older are said to have 80% or more of their 401(k) plans in stocks. A standard split between equity and bonds for people planning to retire soon is often much more balanced.

Several studies have calculated how much savings boomers need to amass to generate enough income. Although those exact numbers differ, the point is too many boomers have not saved enough.

So what could your credit union do to help its boomer membership? First, provide some generic advice. Today's financial world is complicated. Consider face-to-face, print and Web-based planning tools.

Second, encourage members approaching retirement to contribute to their maximum levels in their 401(k) and savings programs if they can afford it. At a minimum, boomers should contribute enough to get their employer's matching fund. Failing to do so is giving away free money. If members are not already laddering their investments at your credit union, teach them the concept and help them set up a savings plan. And remind them that this year they have an opportunity to increase savings because the government gave every employee a 2% raise by changing withholding for Social Security.

Third, help boomers manage their money. Consider a boomers-only retirement planning seminar series that helps them evaluate when they can afford to retire, how to best manage their money in retirement and what types of services they'll need most. Make sure they understand the tax implications of prematurely withdrawing retirement funds. Helping them may mean advising them to rethink when they'll retire and in what manner.

Fourth, recognize that this market is still diverse and that there is no one-size-fits-all solution. Some will start new careers; others will wind down at various paces. Most will face rising health care costs and need help understanding Medicare and Social Security benefits. Some need help distributing significant wealth; others help just to survive.

Well-heeled members will want advice and may be willing to move account relationships to get it. Most of the available self-help tools today focus on wealth accumulation and those tools become decreasingly relevant as one enters the phases of retirement. People retiring need phased-income and time-released cash-flow strategies.

Successful advisers will focus on helping boomers establish a tailored wealth-distribution process for ensuring an adequate quality of life. Life insurance, long-term care, estate planning, equities, fixed income and annuity programs may all come into play and must be part of a complex timeline and road map that is flexible with changes in circumstances.

Instant Insights /

Sad to Say, Many Boomers Can’t Afford to Retire

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