With only six to 15 years to go before they quit working, 50% of boomers aged 50 to 59 mostly agree that they don’t know how much they need to save for retirement, a new study by the Guardian Life Insurance Company of America concludes.
Moreover, 60% of these leading-edge boomers agree at least somewhat that they want to save more but don’t actually do so, Guardian found.
The study surveyed more than 1,000 boomers between the ages of 50 and 59 to understand their attitudes toward specific retirement investment products, particularly variable annuities, and what motivates them to save and invest. “Leading-Edge Boomers: Rethinking Retirement & Exploring Annuities,” was conducted for Guardian by Harris Interactive Inc., Rochester, N.Y.
Confronted with the prospect of living longer than earlier generations, leading-edge boomers must often balance the needs of aging parents and maturing children while trying to focus on managing their own money and saving for retirement, the study concludes.
Guardian found that among leading-edge boomers not yet retired, 69% worry about outliving their financial resources, while 80% are concerned about having adequate income during retirement. Among all leading-edge boomers, 15% say they don’t have enough money to save or invest right now.
Generating an income they won’t outlive is of prime importance to boomers, comments Bruce Long, president, Guardian Life & Annuity Company, a unit of Guardian Life Insurance Company of America, New York.
“Boomers will collectively live longer than any preceding generation of American retirees,” Long says. “Their longevity comes at a time when employment is more transient and pensions are being phased out. They cannot rely solely on employer-paid benefits and Social Security.”
Among boomers surveyed, 48% were not sure of what their best choices were for saving for retirement, and 41% admitted they were not completely confident that their retirement savings and investments were diversified sufficiently.
Many still are shaken by the recent stock market turmoil. Among leading-edge boomers, 57% were concerned that stock market volatility would decrease their retirement income.