Retirement is going to be extraordinarily difficult for baby boomers, and even worse for members of Generation X – a group that will have to deal with diminished Social Security and less chance of receiving any pension, according to the National Retirement Risk Index, a study released by Boston College's Center for Retirement Research.

According to a Los Angeles Times report: "The study by Boston College is the latest addition to a growing body of research that suggests households headed by working-age adults are poorly prepared for retirement.

"The study estimates that most people need 65% to 85% of their annual income in their working years to stay secure in retirement. But 43% of U.S. households will fall at least 10% short of that range, the study found, using what it said were conservative projections."

At the same time, members of Generation X (which generally includes those born from 1965 through 1972) are looking at a considerably more dire situation. "People in the future will face enormous pressure," Alicia Munnell, director of the Center for Retirement Research and former member of the White House Council of Economic Advisors, tells Newsday.

She says there is no magic panacea to solve the problem and that the only hope is for workers to save more and stay at their jobs longer. The report advises people to "consistently set aside 6% of their paychecks (with a 3% employer match), invest prudently and leave the money alone."

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"Saying it hoped to draw attention to the issue, Boston College unveiled a new National Retirement Risk Index based on survey data from 4,500 households in the Federal Reserve's 2004 Survey of Consumer Finances. Researchers calculated that the risk of falling short had risen from 31% in 1983 to 43% in 2004," the Times reported.

And there is more disturbing scenario, the paper says. "The percentage of households at risk of an insecure retirement rises to 66% under a less rosy set of assumptions – for example, if workers retire at age 63 instead of at 65."

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