Many Baby Boomers and Generation Xers do not appear to have a financially sound retirement ahead of them. According to a report from the Insured Retirement Institute, 21.7% of Baby Boomers and 27.8% of Generation Xers have absolutely no retirement savings. Whether it is their lack of knowledge about sound retirement planning or a lack of income is not exactly clear. In the IRI’s article “Significant Number of Boomers and Gen-Xers Falling Behind in March to Secure Retirement,” we also learn that those who hold annuities feel quite secure in their retirement preparation. Of those who have annuity products for their retirement, 53.4% of Baby Boomers and 49.4% of Generation Xers are extremely or very confident that they will live securely in retirement. Those who don’t currently have annuities are far less confident, around 31% in both groups.
It’s really unfortunate that such a large percentage of these groups of Americans lack not only savings, but also investment knowledge to calculate their retirement goal or speak with a financial expert. Of the Baby Boomers and Generation Xers who do have money saved for retirement, 40% of the first group and 33% of the second have saved less than $100,000. Almost half of Baby Boomers have not calculated how much they need to save for retirement. That number climbs to 60% of Generation Xers that haven’t made such a calculation. When it comes to financial advisors, 52.8% of Baby Boomers and 62.5% of Generation Xers have not consulted with an expert. Now when you take into consideration those people who own annuities, their behaviors regarding retirement calculations and financial planners are much better. Nearly 3/4 of Baby Boomers and well over half of Generation Xers had calculated their retirement needs and / or seen a financial planner.
It’s never too late to work on your retirement planning. You may have a tougher road than someone who started earlier than you, but don’t put it off any longer. Calculating your retirement needs and speaking with an expert will help ensure that you have a financially sound retirement.
Written by Rachel Summit
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