I hear a lot lately about Baby Boomers concern over their finances for retirement, but not as much about what they can do to correct the problem. What’s the old adage about continuing to do what we’re already doing but expecting different results? The latest information comes from the Insured Retirement Institute’s recent study. Financial Planning’s Lee Conrad talks about “Baby Boomers Getting Gloomier About Retirement” in an article today. One of the defining characteristics about the Baby Boomer generation is their sheer number, of which only 37% are confident that they have prepared well financially for their retirement.
While many Boomers will be retiring over the next five years, 61% of those surveyed don’t expect their finances to improve over that time frame. Baby Boomers were perhaps those hurt the worst by the economic downturn of 2008 and they are still trying to recover. Many have worked well past the age when they thought they would retire and many more are still working in their “retirement”. In last year’s study, 11% of people thought they would work until age 70. That percentage increased to 18% of Baby Boomers planning to work until 70 over the course of a year. Of those Boomers still working, almost 80% of them plan to use income from continued work as one of their sources of retirement income. That number increased from 67% last year.
But there are many Baby Boomers who are prepared for retirement, even if it will include some challenges. It seems as though working with a financial professional on retirement planning is the best way to increase confidence about retirement preparedness. Nearly half of the Boomers working with an advisor are either very or extremely confident that they are financially prepared for retirement. Only 28% of Boomers planning on their own had such confidence. While I’m surprised the number isn’t closer to 100%, 94% of Boomers working with advisors have some retirement savings, compared to 64% of those not working with an advisor. There is a retirement goal in place for 71% of those working with advisors compared to 34% of those who are not.
If you are looking for an advisor to increase your chances of a successful financial retirement, we can help you find one that will meet your needs. We hope that more Baby Boomers will change behaviors and take action to improve their planning and finances for retirement.
Written by Rachel Summit