A large amount of Gen Xers and Boomers are falling behind in their goal of a secure retirement. New research by the Insured Retirement Institute shows that these two groups, especially, do not have enough saved for retirement, lack investment knowledge and have not taken important retirement planning steps, such as calculating a retirement savings goal or consulting with a financial professional.
Nearly 22 percent of Baby Boomers and nearly 28 percent of Gen Xers have no retirement savings. Of those who have saved and indicated their savings levels, nearly 40 percent of Boomers and about two-thirds of Generation X have less than $100,000 saved for retirement, according to the IRI data.
Nearly 41 percent of Boomers and 45.1 percent of Generation Xers reported that they are not very or not at all knowledgeable about investing in securities. Many have not calculated how much they will need to retire. Only 51.4 percent of Boomers and 40.7 percent of Gen Xers have done the math. Nearly 53 percent of Boomers and nearly 63 percent of Gen Xers have not consulted with a financial advisor.
“The good news is that when we dug deeper, we found that those who are working with a financial advisor and those who have determined how much savings they will need for retirement are more confident in having a financially secure retirement,” IRI President and CEO Cathy Weatherford said. “But on the flip side, those who are not taking these retirement planning steps are lacking this confidence, and unfortunately, this includes many Baby Boomers and Gen Xers. And when you consider how many Baby Boomers and Gen Xers have low levels of savings or haven’t saved at all, it presents a rather gloomy future for a significant number of Americans.”
Annuity owners have a more positive outlook about their ability to retire comfortably than people who didn’t purchase annuities.
The Insured Retirement Institute (IRI) is a not-for-profit organization that for twenty years has been a mainstay of service, commitment and collaboration within the insured retirement industry.