A new retirement number?

By John Sullivan

October 12, 2009 at 08:00 PM

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As Americans start to pick up the pieces after the stock market free-fall, people are more scared than ever, especially when it comes to retirement. Many are realizing that the future isn't going to be easy unless you plan.

Enter Terry Savage, nationally known personal-finance expert and author of The New Savage Number: How Much Money Do You REALLY Need to Retire.

"Just as Americans were too optimistic about their retirement prospects a few years ago, I believe we have become far too pessimistic about the future," Savage says. "It is not 'game over' for America — or for your retirement plans."

She offers the following advice:

Beware of "Generation Welfare": Boomers have the numbers and will be able to vote themselves the benefits. But the younger generations will rebel at paying the huge taxes necessary to support their parents' retirement. We need to solve this problem now!
Learn how to hedge against even a small amount of inflation using appropriate investments, such as gold and natural resources.
YES, you should keep investing in the stock market.
Reverse mortgages may be a 'saving grace'.
Long Term Care Insurance is a must — especially for women!
And, yes, Boomers will still be able to retire.