Baby boomers—those people born between 1946 and 1964—have enjoyed the highest incomes in American history.However, as growing numbers of boomers become eligible for benefits from Social Security and Medicare, and as those programs themselves undergo changes and cutbacks, whether or not boomers are adequately prepared—and preparing themselves—for retirement is being questioned by government officials, financial experts, and the press.

In 1993, when the oldest baby boomers were 47, the Congressional Budget Office (CBO) first took a look at the issue of their retirement prospects. According to the CBO's study, titled Baby Boomers in Retirement: An Early Perspective, which was completed at the request of Congress, baby boomers typically were earning more and accumulating wealth at the same pace or faster than their parents had at the same age. The study concluded that boomers were generally likely to be better off in retirement than preceding generations had been. However, the study assumed that Social Security and other government benefits would be paid as per 1993 levels—which we now know will not be the case. The study also did not estimate baby boomers' probable retirement incomes, or address whether those incomes would be adequate to meet boomers' retirement goals.

In lieu of revisions to Social Security and Medicare policy and resulting "looming difficulties in funding those programs," the CBO is currently revisiting the issue of boomers' retirement prospects. According to the CBO's website (www.cbo.gov), studies reach a variety of conclusions, but most of the studies suggest that the chances of a rosy retirement for baby boomers are about 50/50.

"Most of those studies suggest that about half of boomer households are on track to accumulate enough retirement wealth to maintain their working-age standard of living after they retire as planned," reports the CBO. "The other half of households are likely to face a drop in their living standard at retirement, especially if they retire when they now intend to. In many cases, the shortfall will be modest and can be made up through a few additional years of work. However, a substantial fraction of low-income boomer households are accumulating very few assets, and net worth among families whose earners did not graduate from high school appears to have declined during part of the 1980s and 1990s. If current trends continue, many of those baby boomers are likely not only to face a lower standard of living when they retire, but also to find themselves largely dependent on government benefits.

Is there anything, beyond working past 65, that anyone who will reach retirement age after Social Security and Medicare changes take effect can do to prepare adequately for retirement? According to Charles E. Kirk, an individual investor, stock trader, and stock market writer whose publication, The Kirk Report, appears online daily, "The golden years won't be so golden in the future," but there are measures we can take to compensate.

"If what I read is true, there is ample cause for concern that Americans haven't been saving enough for retirement and still expect Uncle Sam to step in to help them in their golden years," says Kirk. "Unfortunately, political change in America has focused on people taking responsibility for their future well-being, instead of relying on the government. This has shifted the burden at the same time when Americans can no longer rely on pensions or retirement savings to maintain their standard of living. Chances are fairly good this trend is likely to increase for the foreseeable future."

Today, according to Kirk, many Americans are attempting to compensate for the dwindling and possible future disappearance of Social Security and Medicare benefits by putting all their eggs in their nest, so to speak, and investing in real estate. That may work in the short-term, says Kirk, but not in the long-term.

"A few years ago everyone wanted to buy stocks and many were hurt substantially when the market failed to meet expectations," he explains. "Now, Americans have turned toward the real estate market as the place to put their money—buying bigger homes, flipping houses or condos, or buying second homes so they can retire by the gains appreciated later in these investments. The sheer truth of the matter is that our standard of living is declining and many are taking risky maneuvers to compensate. Everything has a cycle—the stock market, the economy, and yes, the housing market. The general public has a very poor habit of timing their entrance into investments at the wrong time."

In fact, Kirk believes that "the two mostly widely-held maxims—that the market always goes up over the long-term and that you can't lose money in real-estate"—will both "be proven flat-out wrong."

Why are half of all Americans inadequately prepared for retirement? According to Kirk it's because the rising costs of energy, education, housing, and health care that Americans currently face means that "retirement savings tend to be well below top priority." But all is not lost, says Kirk, not even for folks who are having a tough time making ends meet, or who are already in their fifties. "I don't think it is ever too late to begin saving for a rainy day or for retirement," he says.

One reliable alternative retirement funding strategy is to buy low-cost index funds. "The simple fact is that most portfolio managers, over the long-term, do not beat the market," Kirk explains. "In fact, most individual investors fail to just match the market's performance. I consistently tell investors and traders that the first goal to financial and investment success is to figure out a way to just match the market's performance."

According to Kirk, matching the market's performance can be achieved through investing in very low-cost funds, also known as sector-based exchange traded funds, which also "offer viable opportunities, especially for the investor who wants more active participation in the market." Finally, he says, "owning a small, but very selective batch of stocks for the long-term—i.e., 10 to 20 years—has always been a smart approach."

Another strategy is to establish a portfolio that earns money gradually over the long-term. Although Kirk trades for a living, he also makes sure to invest for the long-term within his individual retirement accounts (IRAs). "My strategy for out-performance is very simple," he explains. "I have a so-called 'lazy portfolio' of low-cost index funds and 20 percent exposure to handpicked, long-term equity investments."