A new report by The University of Maine and AARP found working Mainers who are moving towards retirement don't have enough retirement funds saved to meet their basic needs. They say if something isn't done to fix this, it could impact the state substantially.
"It's fairly well known that the baby-boomers are retiring now, and that's putting strains on social security, but it's also going to be putting strain on programs like Medicaid," said Dr. Philip Trostel, an economic and public policy professor at the University of Maine.
Trostel said retirement income is a lot less than one would think. Even more alarming, he said saving for retirement has gone down dramatically .The study found people aren't able to save for the future like they used to.
"A combination of factors including the market, the recession, housing costs, cost of living increased," said Amy Gallant, Advocacy Director of AARP Maine.
As the retirement population grows in Maine, Trostel is estimates the state will spend more money to to help those who are relying on the state.
He also said that about 28-million was financed by the state--in about 15 years he estimates that number to increase to a staggering amount--more than 360 million dollars. AARP says saving as much as you can as early as you can can help--but what can you do now if you haven't?
"If someone is nearing retirement and they don't have enough saved and they are eligible for these services apply, enroll," said Gallant.
She also said the state needs to increase financial literacy and increase access of retirement savings directly through employers. She said businesses should be flexible and supply retirement options for their employees because there is a real cost to Maine tax-payers down the road.