"Retirement was a 20th-century idea that won't exist in the same way in this century," said Ric Edelman, chairman and CEO of Edelman Financial Services, which has about 25,000 clients.
For millions of Americans, the retirement outlook is bleak. The latest annual study of the retirement readiness of baby boomers and Generation X by the Employee Benefits Research Institute found that 38 percent of Americans in the lowest-income quartile of those generations will likely run out of money during their first year of retirement.
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By year 10, 64 percent of them will be penniless and 11 percent of those in the next-lowest quartile will be in the same predicament. When long-term-care costs—the biggest wild card—is factored in, the numbers get worse.
"It's astounding how fast retirees in the lowest-income quartile will run out of money," said Jack VanDerhei, research director at EBRI. "An abundance of other people are going to become indigent when they need nursing care, and no one knows who is going to pay for it."