As recently as five years ago, it appeared the McArthurs had a comfortable retirement waiting for them. John and Patsy, now both 63, are a North Carolina-based married couple who co-ran a construction company which, at the height of the housing boom, had total revenues of about $14 million and a staff of 60 people.
According to a recent article in The Atlantic, they planned to use that income to save for retirement, but then the housing bubble hit, and they had to sell the company.
“When you put every penny you have into building a business whose value then disappears, living on a beach doesn't seem as important anymore,” Patsy told the magazine.
Research indicates that the McArthurs are not alone. According to the news source, a Boston College study from 2010 showed that the gap between what is needed for most people to retire, and what they will actually have saved, is about $90,000 per household.
Many Baby Boomers have bounced back from the recession by using their expertise to start new business from scratch. The media outlet interviewed Jim Smith, a retired IT professional who stopped working to spend time making furniture – a favorite pastime – for his family. But eventually he went back into business, starting his own consulting company.
With more seniors moving into assisted living communities when they age, Baby Boomers should consider using their expertise and knowledge to help finance their retirement.