Baby boomers are retiring in droves. Some are well prepared while others never prepared or lost much of their savings to the great recession.
For the fourth year in a row, the Insured Retirement Institute (IRI) has issued a report detailing baby boomers’ expectations for retirement in 2014. In it, the IRI finds that while confidence in retirement preparation among boomers continues to slip, slight improvements were made in several areas, including the percentage of boomers with retirement savings, their total savings, as well as the number of boomers with a retirement savings goal and a planned retirement age.
“One of the most striking developments since we began this research series is the decline in boomers who did not know when they would retire,” IRI President and CEO Cathy Weatherford said. “That number has been cut in half. While the research shows that they are deciding to retire later in life, the important thing is that they are grappling with important aspects of retirement planning and beginning to develop a clearer picture of where they are and where they intend to be.”
The following are the five boomer expectations for retirement in 2014:
1. Confidence in retirement
Baby boomers’ confidence in retirement has declined since 2011, according to IRI. In fact, the number of boomers who are confident in their efforts to prepare financially for retirement has dropped 9%. In 2011, 44% of boomers surveyed were confident in their retirement plans. Today, however, only 35% say they are confident.
The report also noted a sharp increase among those showing little to no confidence at all regarding their retirement plans and outlook. A full 31% of boomers reported having little to no confidence in their retirement preparations in 2014, up from 22% in 2013.
2. Financial outlook
Boomers don’t seem to be satisfied with how they’re doing financially. In fact, in 2013, 77% of boomers reported being satisfied with the way things were going, while 19% stated they were dissatisfied. One year later, only 65% are satisfied, while 32% indicated they are dissatisfied.
It’s not all doom and gloom, however. The report shows that boomers are beginning to show more optimisim regarding their financial situation — with some thinking it may improve over the next five years. As the graph below illustrates, 34% of boomers feel their financial situation will improve somewhat.
3. Planned retirement age
Though boomers may seem unclear about their financial preparations for retirement, they are, each year, becoming more certain of their retirement age. In 2011, 35% did not know when they would retire. Today, only 17% are uncertain.