Notions of a mysterious Bermuda Triangle that swallows ships and airplanes have captured the imaginations of quite a few people, including film makers and novelists.

But those of us who live on this tiny dot in the middle of the Atlantic Ocean know that poor navigation and bad weather are the most likely causes of these unfortunate events. Ships and planes travel the triangle between Bermuda, the USA and the Caribbean quite safely on a daily basis, thanks to planning and preparation by captains and crew. Far less sensational is a new triangle that is affecting our ageing population, the financial bind of trying to save for an increasingly long and expensive retirement while caring for elderly parents and educating children.

Today the average 60-year-old is very likely helping at least one parent to remain active and live independently, and may be providing significant care. At the same time, this person may have children or grandchildren that need at least partial support whether with housing or education. It is also estimated that 50 per cent of all Baby Boomers will live to be 100 years old, and this has serious implications for funding lengthy retirements.

Many members of the Baby Boomer generation are paying college tuition bills to help their children. Many, if not more, are trying to cope with consumer debt in the form of mortgages, loans, and credit card balances. According to Neal Cutler, a financial gerontologist who specialises in the financial needs and issues related to ageing populations, this is the "ultimate financial trifecta" affecting the Baby Boomer generation. And if this news isn't bad enough, just as our demographics are undergoing a huge and rapid shift the faltering economy of our friend and neighbour, the United States, is having a profound impact on our financial health.

The effect of this economic uncertainty is that retirement savings for the average Baby Boomer are vulnerable at a time when choices have to be made between elder care and education assuming, of course, that there are savings in place for retirement. In contrast to commonly held perceptions that all older people are either very poor or very wealthy, research into age-based rates of savings and asset accumulation shows that while older persons save less, many of them have benefited from rising values in property, investment portfolios and pension plans.

While approximately 80 percent of Bermuda's seniors own their own homes, not all have saved, invested, or contributed to a company-sponsored pension plan. This means that some home owners are property rich and cash poor, and responsibility often falls on adult children to support the senior in their daily living.

Younger persons who are starting out in career development, home ownership, and starting their own family are far more likely to have high debt, as are those in mid-life who are caught in the financial triangle mentioned above. What all this means for the average 60-year-old is that retirement at 65, realistically, is not an option. Most Baby Boomers acknowledge this and, in fact, 78 percent say they want to continue to work, but not necessarily in the same job or at the same pace as they work today. Full-time, part-time, seasonal time, flexi-time, and/or a complete change of career are attractive options for many soon-to-be retirees. But such major shifts in work and the impact on income security means that serious planning is required.

The Bermuda Triangle is navigable. Sure, storms come up from time to time, but a prudent captain prepares before he leaves land, secures the hatches and cargo, and has his emergency beacon at the ready. And if the weather forecast is really bad, he might just think about staying put until such time as the skies clear. Using this nautical theme, Baby Boomers might take the advice of generations of old salts and follow the same guidelines. Plan for the best and prepare for the worst. Save, get out of debt, and plan to work as long as you are able. Stay healthy so that you can enjoy the fruits of your labour, but also buy insurance to cover the unforeseen. That is good planning and preparation.

Marian Sherratt is the Executive Director of the Bermuda Council on Ageing.