In a January 2024 research paper, the Retirement Income Institute reports that 2024 "marks the beginning of the 'Peak 65® Zone,' the largest surge of retirement age Americans turning 65 in our nation's history. Over 4.1 million Americans will turn 65 each year through 2027, which is more than 11,200 every day. By the year 2030, all baby boomers will be age 65 or older."

The Retirement Income Institute says that "fewer employers offer a traditional defined-pension retirement plan that provides much needed protected income throughout retirement. The old retirement system no longer fits the needs of today's American workforce. The result is that more Americans are currently at risk of entering retirement with Social Security as their only means of protected income, leaving many exposed to financial insecurity and lacking sufficient, reliable, and protected  retirement income that will last for the rest of their lives."

This assessment is troubling for millions of Boomers who are part of the "Peak 65" surge. It is likely one of the compelling reasons why a significant percentage of those age 65 and older remain in the workforce. According to the Pew Research Center, 19 percent of Americans age 65 or older were employed in 2023 -- nearly double the rate of those who were working 35 years ago. On average, they are working more hours than in previous decades. Today, 62 percent of older workers are working full time. In addition, older workers are twice as likely as younger workers to be self-employed.

Working may generate income today, but it may not result in enough to support our lifestyles in later years. That's why the Retirement Income Institute sees the old "three-legged stool" retirement model of an employer-provided defined-benefit pension plan, personal savings and Social Security as outmoded. Today, Social Security is the principal source of retirement income for most retirees, with Social Security benefits representing about 30 percent of the income for those over the age of 65.

So what is the answer for Boomers? Many, but not all, have been able to use investment vehicles such as 401(k) plans and IRAs to help secure their future retirement. Others plan to work as long as they possibly can. The Retirement Income Institute suggests potentially adding annuities to the mix to create what it calls a "personal pension plan." They point out, however, that annuities can be confusing to consumers, so Boomers need to educate themselves about these investments.

Many Boomers recognize that today, it is more important than ever to work in partnership with a financial advisor to develop a prudent plan to fund a comfortable retirement and be sure enough capital can be available when needed. If you haven't already worked with a financial advisor, don't wait. You are part of "Peak 65" and time is running out.