When it comes to money, the baby boomer generation is woefully underprepared for their golden years. And according to a recent study, Boomer Expectations for Retirement 2016, from the Insured Retirement Institute (IRI), time is of the essence when it comes to helping this group implement a comprehensive plan to get its finances in order.
The IRI research shows that a majority of baby boomers (76 percent) aren’t confident their savings will last through retirement — the lowest level of confidence ever shown over the six years the annual study has been conducted. Just over half (55 percent) of boomers have put money away for retirement, and only 42 percent of those with retirement accounts have saved less than $100,000 — which would generate less than $7,000 in retirement income. One in five boomers is concerned they won’t have enough savings to cover even basic living expenses. Thirty percent of boomers stopped contributing to a retirement account, and 16 percent have already taken premature withdrawals from their retirement accounts.
“The road to a confident financial future begins with developing a holistic retirement plan,” said Cathy Weatherford, IRI president and CEO. “Unfortunately, most boomers are not taking important planning steps. 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. 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.”
Even as they age into their ’60s, boomers will face more years in the workforce. During the past year, 30 percent of boomers postponed their retirement plans, with 59 percent looking to retire at age 65 or older.
Boomers benefit from advisors