Learn from boomers' mistakes, save now

As my dad prepares to retire next month, we've had a lot of discussions about what my parents wish they'd done differently about retirement planning.

Mainly, they wish they'd saved more and spent less -- and they're not alone. A survey of 2,500 pre-retirees, released Nov. 17 by Thrivent Financial for Lutherans, found that 71 percent worry they don't have enough money put away for their golden years and wish they'd started saving when they landed their first full-time gig.

"There's a tinge of regret on the part of the boomers," said Pamela Moret, a baby boomer and executive vice president of marketing and products for Thrivent. Many started saving late, assuming that pension plans and Social Security would carry them through retirement and that former employers would pay for their health care. The new reality of self-funded retirement plans and consumer-driven health care caught them by surprise.

Lots of people in my generation -- Generation X -- already are cynical about whether pensions and Social Security will be there when we need it. They'd agree with Moret, who thinks "it's probably going to be a very challenging retiring environment."

Thrivent's survey asked boomers to share retirement advice for the younger generations. I know kids have a tendency to ignore their parents or, in an act of rebellion, do the opposite of what they did. But in this case, rebellion could make you rich. So here are words from the recently wise.

Start saving ASAP: About 86 percent of respondents recommend we start saving today. Nearly half of the pre-retirees interviewed waited until they were 35 or older to start; 24 percent still haven't saved. "A lot of them felt they could just put it off ... not realizing the negative impact it has on their portfolio," said Tim Schmidt, 43, who manages 150 financial advisers for Thrivent.

I'll say. The average retirement portfolio was worth just $58,000 at the end of last year, according to the Employee Benefits Research Institute.

Plan for the unexpected: 57 percent of respondents want us to have money saved for emergencies and insurance to cover tragedies. "Some of the biggest derailers of retirement are disability and loss of job," said Moret.

Try telling that to young people. A survey by Aetna and the Financial Planning Association conducted this summer found 44 percent of 18- to 24-year-olds would give up their health insurance before their cell phones.

Seek professional help: One-third of the pre-retirees interviewed suggest young people meet with a financial adviser. Thrivent's Schmidt, an adviser himself, obviously agrees. But many young people think that's an option reserved for the wealthy. Others are ashamed by their lack of financial discipline and avoid advisers for fear of looking foolish, he said.

That's a valid concern. Nearly 60 percent of baby boomers haven't done any formal retirement planning -- whether with an adviser or on their own. Yet some still plan to travel both in and out of the United States and start new hobbies and activities. "They're not being real with themselves," Schmidt said.

Mind your spending: Schmidt thinks creature comforts are preventing young people from building wealth and suggests we be more conscious about how we spend money. He asks: Do we "really need a latte every day at $4 a pop?"

Do boomers? Which generation taught us to be such big spenders in the first place?

Kara McGuire writes about personal finance for McClatchy Newspapers. Write to her at kara@startribune.com .