Baby boomers are putting their retirement savings in jeopardy


Americans are more financially prepared for retirement than they were just a few years ago, recent research found.

One of the reasons for that good news might be bad.

Many people approaching retirement age today are heavily invested in stocks, potentially leaving their savings vulnerable to the next recession.

“If there was a market downturn, they could lose a significant chunk of what they’ve worked so hard to save,” said Meghan Murphy, the vice president of thought leadership at Fidelity.

Roughly half of baby boomers have their 401(k) plans invested in riskier allocations than Fidelity suggests for their age group, Murphy said. (Fidelity recommends having around 54 percent in stocks and the rest in bonds, money market funds or certificates of deposit.)

Eight percent of baby boomers have their entire 401(k) holdings in equities.

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