According to the AARP, about 10,000 baby boomers are turning 65 every day. A Vanguard report indicates that the median 401(k) balance for those in the 55-64 age group is a little less than $188,000. That means that if they use the 4 percent rule for withdrawals from their investments during retirement, they will only realize an income of just over $7,000 annually. And baby boomers by no means are the only generation ill-prepared for retirement. Millennials should be socking away money for their retirement years. But research done by the National Institute on Retirement Security indicates that most millennials aren’t even participating in their employer-sponsored retirement plan. We spoke with tax expert and CPA Mary Kay Foss about the mistakes people make regarding preparing for—or rather not preparing for—retirement.

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