Boomers will need to work extra two years

“[T]he key for workers is to keep saving, and to make sure they are using all the tools and resources they have at their disposal to maximize their retirement savings potential. It also means that many employees — particularly Baby Boomers — may have to make some tough decisions about what retirement looks like. They may need to work longer, part-time, or find other ways to supplement income in retirement to make up for the shortfall.”

Hewitt recommended ways for workers to maximize their retirement plan’s earning potential:

• Take advantage of company matches. Roughly 3 percent of employers have suspended company matches. Boomers who still have the option should take advantage of it, and if not, should increase their own contribution to make up for the reduced contribution.
• Set up plans to automatically increase the amount of the contribution. An extra 1 percent per year will hardly be missed, but can add 50 percent or more to retirement savings, according to Hewitt. Over half of employers offer this option.
• Don’t get complacent, especially now. Make sure funds are properly diversified and rebalanced occasionally for the right mix of funds.