Sixty-two percent of boomers 50-66 believe that their personal financial situation will not improve in the next five years. Additionally, a majority of Boomers expect to retire later in life, or expect to rely on post-retirement employment income. The Insured Retirement Institute (IRI) conducted this annual survey to help determine the retirement preparedness of the Boomer generation. It is not a pretty picture
This IRI survey targeted Boomers 50-66, and concluded that they continue to have both long- and short-term concerns about the economy. Understandably, the majority are worried about living comfortably throughout their retirement years.
Other key survey findings include:
- The most expected sources for retirement income are Social Security, employer-sponsored retirement savings plans, and traditional employer-provided pensions.
- Over 35 percent of Boomers noted that they were unsure at what age they would retire, with 35 percent saying they expect to retire after 66, which includes 23 percent that expect to work into their 70s.
- Boomers do not plan to rely on individual investments during retirement, and only 46 percent have consulted a financial advisor to help with retirement planning.
- Four in 10 Boomers are confident that they will have enough money in retirement to cover basic needs; however, a majority are not confident that they will be capable of covering long-term care needs for themselves or their parents.
How to Use
Retirement preparation is important for all Americans, especially the very large Boomer generation. This survey reflects a need for more education and support on personal savings and investments, which local officials can help provide. Boomers need to understand the importance of investing for their retirement outside of employer-supported retirement plans. Additionally, although a number of them are already concerned about covering health expenses, it has been reported that these costs could be even higher than most anticipate. Therefore, it is imperative that local officials educate Boomers on the importance of incorporating health expense planning into every retirement security plan.