Less than one quarter of baby boomers are confident they will have enough savings to last throughout their retirement years, according to new research.
The Insured Retirement Institute unveils this finding in “Boomer Expectations for Retirement 2016.” Released during a conference call with reporters to open National Retirement Planning Week 2016 (April 11-15), IRI’s 6th annual update on boomers’ retirement preparedness is based on a survey of 800 Americans aged 53 to 69.
The 24 percent of boomers who express confidence in their retirement savings outlook is “the lowest level” since IRI began this research in 2011. In that first study, 37 percent of boomers expressed the same level of confidence.
Just 55 percent of boomers, the report notes, have saved for retirement. And more than 4 in 10 of those boomers with savings (42 percent) have saved less than $100,000, an amount that would generate less than $7,000 a year in retirement income. The survey notes also that one in five boomers are concerned they will not have enough savings to cover basic living expenses.
“Unfortunately most boomers are not taking important [retirement] planning steps,” says IRI President and CEO Cathy Weatherford. “Less than 40 percent have determined a savings goal, and just over a quarter are seeking help from a financial professional.
“Time is running out,” she adds. “Unless boomers begin to focus on their long-term needs now and commit to savings, they will need to work longer and make steep cutbacks to make ends meet in retirement.”