WASHINGTON, D.C. – The Insured Retirement Institute (IRI) today released a new research report highlighting the difficult decisions confronting Baby Boomers as they march toward their retirement years with inadequate savings. Among the oftentimes unsavory options are postponing retirement, increasing savings, relying on help from family and/or assistance programs, and reducing expenses in retirement – possibly by downsizing or relocating to locales with lower costs of living.
With annual expenditures today exceeding $50,000 for the typical 65-year-old retiree, and Social Security generating only $16,000 in retirement income a year on average, many Boomers will need to rely on their savings to close this “income gap.” The issue is that four in 10 Boomers have no savings for retirement, and even among those with retirement savings, more than two-thirds have less than $250,000 saved.
“I’ll go out on a limb and venture that moving to Harlingen, Texas, which boasts the lowest cost of living in the country, is not a realistic option for most future retirees,” IRI President and CEO Cathy Weatherford said. “But many Boomers will have to make some tough decisions. The good news, as we show in our new paper, is that there are some things Boomers can do to boost their savings and reduce expenses. Then by constructing a strategy – using a combination of retirement income sources – they can have a plan in place to meet their retirement needs.”
The entire report, “Baby Boomers and Retirement Planning Strategy,” is available HERE.
About the Insured Retirement Institute: The Insured Retirement Institute (IRI) is the leading association for the retirement income industry. IRI proudly leads a national consumer coalition of more than 30 organizations, and is the only association that represents the entire supply chain of insured retirement strategies. IRI members are the major insurers, asset managers, broker-dealers/distributors, and 150,000 financial professionals. As a not-for-profit organization, IRI provides an objective forum for communication and education, and advocates for the sustainable retirement solutions Americans need to help achieve a secure and dignified retirement. Learn more at www.irionline.org.