Male Baby Boomers take more investment risks than women, according to data released by the Insured Retirement Institute.
When choosing an investment vehicle, 22.2 percent of male Boomers favored rate of return and 15.3 percent favored past investment performance. By comparison, rate of return was favored by only 15.1 percent of female Boomers and just 11.5 percent chose past performance.
Women were more likely to choose a retirement vehicle based on guaranteed monthly income and financial advisor recommendation, or 17.6 percent and 17.2 percent respectively, compared to 14.4 percent and 12.7 percent of male Boomers.
“As our dads quickly approach retirement age, as financial professionals, we need to have conversations with them and their families to ensure that they have a financial plan in place to attain security during their later years,” said IRI President and CEO Cathy Weatherford. “The sooner we have these conversations, the more time they will have to prepare appropriately and make necessary adjustments. IRI has developed this fact sheet to provide a starting point and to help facilitate those conversations with a goal of developing a plan toward financial security.”
Based on the “IRI Quick Facts: A Portrait of a Male Boomer, 2012,” about one in five have postponed retirement and about 27 percent don’t know when they will retire. More than 65 percent said they would look for another job during their retirement.
Disturbingly, nearly half of all Boomer males have not calculated how much savings they will require for retirement and one in five have not saved for retirement. The IRI also found that one in four men have less than $100,000 saved for retirement and about one in three have more than $250,000 saved for retirement.
Sixty percent do not see their financial condition improving during the next five years and six out of 10 don’t believe their financial security in retirement will be better than that of their parents.
The Insured Retirement Institute is a not-for-profit organization that for twenty years has been a mainstay of service, commitment and collaboration within the insured retirement industry.