IRI Study Finds Retirement Confidence Plunging Even as Boomers’ Financial Expectations Are Improving
“These numbers suggest that uncertainty is creeping in, and more Baby Boomers are doubting their ability to make their savings last,” IRI President and CEO
Other key findings from the report:
- During the past year, nearly a quarter of Boomers reported experiencing difficulties paying their rent or mortgage, and 19 percent stopped contributing to a retirement account.
- Only 19 percent of Boomers have
$250,000or more saved for retirement, while four in 10 Boomers report having no savings for retirement.
- In the past year, 24 percent of Baby Boomers postponed their plans to retire. About three in 10 Boomers, 28 percent, expect to retire at age 70 or later. In 2011, only 17 percent of Boomers expected to retire at age 70 and beyond.
- A quarter of Boomers are confident in their financial preparations for retirement, 28 percent believe they will have sufficient savings to cover medical expenses in retirement, and only 19 percent believe they will be able to cover any long-term care needs.
- More than half of Boomers, 55 percent, expect to budget income in retirement for travel and leisure activities. Among Boomers with less than
$250,000 dollarssaved for retirement, 40 percent expect to budget retirement income for these activities.
- Nearly six in 10 Boomers, 58 percent, have made no preparations to plan for future cognitive issues. Among those that have, the most common preparations include documenting financial affairs and recording their wishes.
- Boomers who own annuities are more likely, by more than two-fold, to be highly confident that their savings will last throughout retirement, compared to Boomers without an annuity.
- Nearly nine in 10, 86 percent, of Boomers who plan for retirement with the help of a financial professional say they are better prepared as a result of their advisor’s help.
The IRI study is based on a survey of 803 Americans aged 52 to 68. The report was released during a conference call with reporters to open National Retirement Planning Week® 2015. The annual campaign promotes and encourages comprehensive retirement planning.
The entire report, “Boomer Expectations for Retirement 2015,” is available at: http://irionline.org/resources/resources-detail-view/boomer-2015
About National Retirement Planning Week® 2015: National Retirement Planning Week® 2015 will take place from
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