Each year, the retirement preparedness of the Boomer generation is shifting. But over the past five years, retirement reality is aligning less with retirement expectations.
So says a new report by the Insured Retirement Institute, which found that 27 percent of baby boomers are confident they will have enough money to last through their retirement, down from 33 percent a year ago and 37 percent in 2011, many have shown concern over the rising costs of living. With many baby boomers looking at the different ways they can manage their finances even looking to get a financial advisor to help with any issues they believe that they might have in the future.
Only 6 in 10 boomers report having any retirement savings, down from roughly 8 in 10 in previous surveys. This might be why many are now seeking retirement financial advice to understand what there options are. But of course expert opinion is Key.
Baby Boomers those Americans born during the Post–World War II baby boom, between the years 1946 and 1964, according to the U.S. Census Bureau. Early boomers started entering retirement age this decade.
Some Boomers are sinking deeper into debt ahead of retirement, the Institute’s report found. Almost a quarter of all boomers said they had had difficulty paying their mortgage or rent in the past 12 months. More are putting off retirement. Some 36 percent said they plan to retire at 70 or later, up from 19 percent in 2011. Hopefully, by this time, most of them will have saved enough to be able to afford to hire a care agency if they require it.
“However, working Boomers are more optimistic than retired Boomers,” the report says. “Eight in 10 working Boomers believe they will be at least as well off in five years, and half believe their financial situations will improve. Retired Boomers feel a little less hopeful, with only seven in 10 believing things will be the same or better financially, and only about four in 10 envisioning improvement.”
Here are highlights from the Insured Retirement Institute‘s report.
? Overall economic satisfaction among Boomers dropped precipitously in 2015, to 48 percent from 65 percent in 2014 and further down from 76 percent in 2011.
? The decline in overall satisfaction was more pronounced among retirees, plunging to 45 percent from 72 percent in 2014, versus 53 percent of working Boomers feeling satisfied compared to 60 percent in 2014. These results suggest there may be widespread dissatisfaction developing among Boomers as large numbers of them transition into their pre-retirement and retirement years.
? Only six in 10 Boomers report having money saved for retirement, down sharply from prior years when approximately eight in 10 had retirement savings.
? A significant number of Boomers continue to struggle financially; in the past 12 months:
• Almost one-quarter of Boomers reported that they have had difficulty in paying their mortgage or rent.
• 19 percent of working Boomers stopped contributing to a retirement account such as a 401(k) or IRA.
• 24 percent of Boomers postponed plans to retire.
? The percentage of Boomers feeling extremely or very confident they will have enough money to last throughout retirement has declined significantly, to 27 percent of Boomers in 2015 from almost four in 10 in 2011.