NU Online News Service, Feb. 20, 4:16 p.m. – Middle-income baby boomers surveyed in July 2001 predicted they need annual retirement income of about $40,900 to cover the cost of their favorite activities and basic living expenses.
Harris Interactive Inc., Rochester, N.Y., surveyed 1,004 people born between 1946 and 1961 for Allstate Financial, a unit of The Allstate Corp., Northbrook, Ill. The participants had annual household incomes ranging from $35,000 to $100,000.
To earn the equivalent of $40,900, adjusted for inflation, over the course of a 20-year retirement, a typical boomer will probably need $1.2 million in savings, according to Allstate Financial.
Researchers also asked survey participants to estimate post-retirement expenditures on recreation.
Participants estimated they would spend an average of about $10,900 a year on fun activities.
Fifty-five percent of the participants said travel would be their favorite retirement activity, with an estimated average annual cost of about $7,700.
Other favorite activities included “family activities,” with an annual cost of $3,900, and “hobbies, with an annual cost of $2,200.