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What are the biggest financial retirement-planning mistakes made by baby boomers, that distinguished group 78 million strong who were born between 1946 to 1964?

Alan Haft, a nationally known certified senior adviser, says a common realization is that boomers’ “bulletproof” retirement savings plans are riddled with bullet holes. Ironically, living longer often means outliving nest eggs that were intended to ensure their financial comfort.

Haft counts Hollywood celebrities among his clients, and he has written for publications such as Forbes magazine. In a media release, he offers five nuggets of financial wisdom:

Thinking it’s too late to start planning. Once you reach your 50s or 60s, you might think that it’s too late to begin investing, but that’s not true, according to Haft. Thanks to the power of compounding, boosted by the tax-deferred growth offered by individual retirement account (IRAs), 401(k) plans and annuities, it may not take as much as you think to build up a nest egg, he says.

Underestimating your life expectancy. Almost 20 percent of workers expect their retirement to last 10 years or less, while another 15 percent expect their retirement to last 11 to 19 years, the release says. But according to the 2000 Retirement Confidence Survey by the Employee Benefit Research Institute (EBRI), half of the men reaching age 65 have an additional life expectancy of approximately 17 years, while half of the women reaching age 65 have an additional life expectancy of approximately 21 years. Understanding how long you will likely live is paramount when it comes to planning, Haft reminds his clients.

Miscalculating your savings needs. Haft says many financial planners will tell you to plan on needing 60 percent to 85 percent of your pre-retirement income in your retirement years. But do general percentages really hit the mark? According to the EBRI survey, only 53 percent of workers have tried to determine how much money they’ll need to save by the time they retire. Half of the workers who tried to estimate their retirement financial needs increased their investments or changed their asset allocation as a result of their calculations, Haft says. New software and online calculators have made the math easier. Quicken offers one, as do many mutual fund companies. Or log on to stockpoint.com.

Not taking inflation into account. Many investors, particularly older ones, are uncomfortable with market volatility, says Haft. As a result, they invest solely in Treasury bills, fixed-rate CDs and savings accounts, he says. Doing this could potentially eat away at most of their investment return, as these vehicles tend to return close to or less than inflation. As you approach retirement — and even in retirement — it’s important to consider keeping some money in growth investments, such as stocks and stock mutual funds, Haft recommends.

Putting other financial goals first. Retirement probably isn’t your only financial goal — you may also be saving for your children’s or grandchildren’s college education or saving for the down payment on a second home. These are all important, Haft agrees, but don’t place them ahead of a financially secure retirement. n