With a bachelor's degree in accounting from the University of Illinois at Urbana-Champaign, Walt Hommerding is an Orange County Five-Star Wealth Manager. He has served as the Managing Director-Investments with Wells Fargo Advisors since 2002. Walt Hommerding (telephone 949-759-4564; e-mail walt.j.hommerding@wfadvisors.com) assists individuals with retirement planning, among other services.
According to data collected from the Insured Retirement Institute, only a third of baby boomers have retirement savings of more than $250,000. Based on current savings levels, the majority of boomers will retire with a potential income gap of between $3,864 and $12,072 each year.
While younger workers have more time to save money for retirement, older workers have the benefit of funding retirement accounts at increased levels. For instance, individuals over 50 years of age can put as much as $6,500 into an IRA and $24,500 into a 401(k) each year.
The average retirement age for today's worker is 66, but those behind on retirement savings may have to work longer, which will help them avoid using their existing savings and generate more money for their 401(k) or IRA. Additionally, Social Security benefits will increase 8 percent for every year a worker delays retirement, up to age 70.
