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Boomers Gauge Retirement Needs

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Baby boomers believe they will need an average of about $4,292 per month to live the way they want during retirement, according to results of a telephone survey conducted by Harris Interactive Inc., Rochester, N.Y.

When Harris researchers interviewed 1,474 U.S. residents between the ages of 24 and 57 earlier this year for The Allstate Corp., Northbrook, Ill., they found that the younger participants, who belong to what demographers often call “Generation X,” estimated they would need an average of $3,443 per month during retirement.

The researchers also found that sex and ethnic background affected the estimates.
Women expected to need an average monthly income of only $3,657, but men thought they would need $4,869.

The average was $4,726 for white survey participants, $3,104 for Hispanic participants and $2,787 for African-American participants.

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Other survey findings:

27% of the boomers and 38% of the GenXers believe the economic downturn will force them to postpone retirement.

55% of the boomers and 61% of the GenXers expect to work during retirement. But boomers are more likely to say they will work because of financial necessity, and GenXers are more likely to say they will work to stay mentally active.

Reproduced from National Underwriter Life & Health/Financial Services Edition, September 19, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.