August 18, 2011

‘Retirement Dreams Fading’ for Middle-Income Boomers

14% of boomers have no retirement account

The retirement dream is fading for middle-income boomers, according to Bankers Life and Casualty Company Center. The company released a survey Thursday that found one-third of boomers with between $25,000 and $75,000 have not seen any rebound in their retirement accounts. One-fifth of boomers have less than $10,000 in savings.

Pension and Retirement Account OwnershipUnsurprisingly, just 10% of respondents are confident they have saved enough for retirement.

"Strive to pay down debt, take full advantage of your retirement savings opportunities at work and be realistic about the amount of money you will need to live the retirement lifestyle you want," Scott Perry, president of Bankers Life and Casualty Company, recommended in a press release.

Boomers appear to be doing just that. One-fifth of respondents said they are saving more than they were before the recession started, and more than half have cut discretionary spending. Even more encouraging is that almost all respondents maintained or increased their contribution to their employer-sponsored retirement plan, despite 20% of boomers saying their employers’ cut contributions following the downturn.

Over half of boomers have a 401(k) and 48% have an IRA. The study found 14% of boomers have no retirement account at all.

When it comes to paying down debt, 43% of respondents said they have reduced their credit card debt. Almost one-third of boomers who own their home have already paid off their mortgage. However, 48% don’t expect to finish paying for their home before they retire.

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