Survey: Three quarters of young boomers don’t contribute to an IRA

Three quarters of younger baby boomers don’t contribute to an individual retirement account, according to a new report.

Financial Finesse, an El Segundo, Calif.-based provider of workplace financial wellness programs, published this finding in an annual report on the financial issues of generations within the workforce. The study explores the financial issues, priorities and vulnerabilities of four demographic groups: Millennials, generation X, late baby boomers, and early baby boomers.

The survey reveals that 75% of late boomers—individuals ranging in age from 45 to 54—don’t contribute to an IRA. And fully 8 in 10 of these boomers (82%) are unsure if they are on track for retirement.

The survey notes also that 20% of these boomers don’t save enough in their company’s retirement plan to even capture their employer’s match. And 5% don’t contribute to their company’s retirement plan.

When asked about their top three priorities, most late boomers (85%) nonetheless identified retirement planning. Fewer than half flagged getting out of debt (46%) and managing cash flow (44%).

Additionally, nearly half of late boomers say they do not have an emergency fund to cover unexpected expenses (48%), do not “have a handle” on their cash flow (32%), are uncomfortable with the amount of their non-mortgage debt (38%) and do not regularly pay off their credit card balances (44%).

Most late boomers (80%) note also that they do not have an umbrella liability insurance policy. And 90% don’t have a long-term care policy.

When asked about their top three vulnerabilities, more than 6 in 10 (62%) of late boomers say they are not saving enough for retirement. Nearly half (48%) do not have enough in savings to cover emergencies. And more than one-third (35%) indicate that their wealth is not adequately protected.

On a financial wellness score card, the late boomers do, however, have fare better than those members of Generation X: those ages 30-44. The boomers on average rate themselves higher in terms of money management skills (6.2 vs. 5.6), retirement planning (5.5 vs. 5.2), investing (2.6 vs. 1.9), estate planning (5.6 vs. 4.1) taxes (5.3  vs. 4.7) and college funding (3.7 vs. 2.9).