We recently reported that boomers fear outliving their retirement savings more than death. A new report from the Insured Retirement Institute further highlights boomers’ retirement fears. The report found that among boomers more than five years away from retirement, “living within a fixed income” is the top retirement focus.
IRI found that 60% of respondents said they were afraid of outliving their savings and investments, and 70% say they are worried their household isn’t saving enough. Furthermore, nearly half of survey respondents said they would put “most of their assets” in guaranteed income products, even if they paid a lower return.
According to the IRI report, just over one-third of boomers within five years of retirement have a fully vested pension. Cathy Weatherford, president and CEO of IRI, worries that boomers may rely too much on Social Security.
“Despite its perilous state, our survey found that more than half of all unretired Boomers plan to rely on Social Security for their retirement income,” she said in a press release. “This is a clear indication that financial professionals, elected officials and the media all need to better educate consumers to look outside of Social Security to meet their guaranteed retirement income needs.”
Almost 80% of boomers with more than five years to go before retirement say they don’t think they’ll have enough saved. Unfortunately, 55% don’t know how much they’ll need.
It seems the closer they get to retirement, the better boomers feel about it. The percentage of boomers who say they don’t think they’ll have enough saved fell to 70% within five years of retirement agreed. The good news is 60% of boomers within five years of retirement say they would prefer meeting with a specialist when making financial decisions. Overall, unretired boomers say retirement planning is the No. 1 type of financial advice they’d like to receive in the next 12 months.