While baby boomers remain unprepared as they head into retirement, with 42% of them having no retirement savings, 79% of boomers who work with a financial professional have at least $100,000 in retirement savings, according to a just-released report by the Insured Retirement Institute, in conjunction with National Retirement Planning Week.
According to the report, Boomer Expectations for Retirement 2018, among boomers who do have retirement savings, 38% have less than $100,000 saved for retirement, while only 38% have calculated the amount they will need to retire.
The report from the annuity trade group also trumpets annuity ownership as an indicator of retirement readiness, with 80% of annuity owners having at least $100,000 saved for retirement, compared with only 53% of non-owners.
About 26 million boomers have turned 65 since 2011, with another 50 million to follow in the next 10 years, IRI reports.
IRI’s internet-based survey polled 806 individuals broadly defined as members of the baby boomer generation — aged 55 to 71 — from March 13 to 16.
According to the survey, only 25% of boomers believe that they will have enough money in retirement, and only 28% believe they are doing (or did) a good job financially preparing for retirement.
Cathy Weatherford, IRI’s president and CEO — who plans to retire in December — said on a Monday morning call with reporters to announce the study’s findings that 46% of boomers “expect they will need $45,000 — in current dollars — or more in annual retirement income. Assuming the current average Social Security benefit of $16,848, an individual would need to generate at least $28,152 in additional annual income from a combination of pension benefits and retirement savings.”