Every year the Insurance Retirement Institute (IRI) polls American baby boomers on their views on retirement. The findings are always eye-opening and may help you support your suggestions during client conversations. To read the full study, which polled 803 adults age 52 to 68, see the link below.
What we learned: Boomers are increasingly pessimistic, as these gloomy 2015 results show. For instance, economic life satisfaction dropped precipitously, especially among retirees.
Many report struggling with retirement and financial issues:
- Only 60% of boomers have saved money for retirement, down sharply from prior years when as many as 80% had retirement savings.
- 24% have postponed their plans to retire, while 18% are uncertain when they might retire and 75% of those respondents cited money as the reason.
- 36% plan to retire at age 70 or later, up from 19% in 2011.
- Confidence dropped. Boomers feeling extremely or very confident they will have enough money to last throughout retirement declined to 27%, down from 40% in 2011.
- 1 in 4 report difficulty paying their mortgage or rent.
- 19% of working boomers stopped contributing to a retirement account, such as a 401(k) or IRA.
- 81% have concerns about higher education costs for their children.
- 72% have concerns about medical expenses in retirement.
Here’s the good news: Boomers who work with advisors are more satisfied:
- 68% of boomers who work with a financial advisor are extremely or very satisfied with their lives, while only 41% of those who don’t report satisfaction.
- More than 90% of boomers who work with advisors have money saved for retirement.
Interestingly, annuity ownership also correlates with retirement readiness:
- More than 90% of boomers who own annuities have money saved for retirement.
- 80% of annuity owners expect their money to last, and to have disposable income for travel and leisure.
- More than 60% of annuity-owning boomers have consulted with a financial advisor versus fewer than 20% of non-annuity owners.
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Read the full study: