NEW YORK -- A sharp and sudden decline in financial-asset prices is unlikely as retiring baby boomers sell their assets, according to a report by the Government Accountability Office.

"The bottom line is a market meltdown is unlikely," said Barbara Bovbjerg, director for education, work force and income security at the GAO. "Assets are fairly concentrated among the very high earners."

The report follows one released in 2005 about challenges for the 21st century. The GAO decided to take a closer look at the issue of boomer retirement and the markets because of concerns raised by the media, Ms. Bovbjerg said.

The 2006 study focused on the impact the retirement of the millions of Americans born from 1946 to 1964 would have on financial-asset prices. It also looked at what other researchers and financial-industry participants expect, and what role the rates of return would have on financial markets.

"The good news is a meltdown is unlikely," Ms. Bovbjerg said. "The bad news is there is not a lot of retirement savings. Baby boomers need to think about what they're going to retire on so the rates of return are very important."

That is because the "large majority" of boomers have few financial assets to sell, according to the study. The wealthiest 5% of boomers own 52% of the assets and likely won't need to sell them all during their retirement.

"The assets are concentrated so people retiring are going to sell them slowly," Ms. Bovbjerg said.

Historically, retirees have spent their assets slowly and even accumulated assets during retirement. It is likely that boomers will follow the same cycle and spread the sale of assets over a longer period because of increased life expectancies.

"Nearly everyone needs to do a better job at educating people about preserving assets at retirement," Ms. Bovbjerg said. "People need to know how to draw it down when the time comes."

Write to Jilian Mincer at