Retirement planning not a priority for baby boomers.
When it comes to retirement planning, are baby boomers old enough to know better, but too young to care? A new report from the Insured Retirement Institute finds that the majority of boomers have not been adequately preparing financially for retirement. More than half have not consulted with a financial planner, while 43 percent do not consider themselves knowledgeable about making financial investments. Just over half (54 percent) have tried to calculate a financial goal for retirement.
If you want a better chance at being financially prepared for retirement, get married. The IRI report found that single and divorced boomers are not as set for their senior years as their married counterparts. Half of married couples surveyed said they had consulted with an advisor versus 30 percent of those who are single. Sixty percent of married boomers have tried to figure out how much money they need to save for retirement compared to less than two-fifths of those who are not married. Similarly, 71 percent of married boomers have added to their retirement savings in the past year whereas only 56 percent of single boomers have done so.
Boomers consider themselves hip to the ways of the world, but retirement planning does not seem as high on their to-do lists. Of investors recently surveyed by Millionaire Corner, less than half (44.3 percent) said it was important for a beginning investor to have a professionally prepared retirement plan (not surprising, the majority of these - 52.3 percent - were retirees).
But nearly 40 percent said they were ambivalent on the subject.
Boomers, living and working longer than previous generations, face several challenges in their retirement years. Their workplace retirement plans, personal investments, or real estate lost value over the course of the 2008 economic meltdown. Meanwhile, low interest rates are a stunting the growth of what savings they have. Sixty-five percent of boomers ages 55-64 with a net worth between $100,000 and $1 million (not including primary residence) said they are concerned about having enough money set aside for retirement. Boomers who had children later in life now find themselves saddled with the expense of college and at the same time, perhaps having to care for aged parents. More than half said that these were also primary personal concerns.
And yet, only 21 percent said they would like more advice and guidance in choosing among the investment choices in their retirement plan.
Not surprisingly then, this age group expressed the least confidence that they will have sufficient income to live comfortably in retirement (50 percent versus 56 percent overall).
Just over a quarter (28 percent) said that because of the economy, they will not be able to retire as planned. Also not surprisingly, 82 percent - the highest percentage across all age levels - said it is most important to have a guaranteed retirement income.