The recession has taken a toll on boomers' retirement plans. Are they ready?
According to findings from a report by the Insured Retirement Institute (IRI) "the continuing slow recovery from the economic recession is having a prolonged effect on boomer confidence levels." In addition to the economy, boomers "will be the first generation in which defined contribution plans are a major source of retirement income." The challenge posed by this shift toward defined contribution plans means that boomers have much more personal responsibility in managing the assets, accumulated during a lifetime, for their retirement.
The report also looked at how boomers are faring with and without a financial advisor.
Key observations from the study:
48% of boomers who work with an advisor were extremely or very confident with their financial preparations for retirement compared with 28% who do not work with an advisor.
94% of boomers who work with an advisor have savings for retirement compared with 64% who do not work with an advisor.
79% of working boomers say employment in retirement will be a source of income, an increase of 12 percentage points from the 2011 survey.
69% of boomers are not confident they will have enough money to pay for their children's college education.
24% of boomers have trouble paying the mortgage/rent.
75% of boomers are not confident they will have enough money to pay the long-term care expenses of their parents.
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