A recent survey by the Insured Retirement Institute (IRI) found that more than one-third of pre-retirees do not know the age at which they will retire.
The study, “Boomer Expectations for Retirement,” also found that three in 10 boomers are concerned about having sufficient assets, while more than half said they will work for income during retirement. However, boomers who own insured retirement products such as annuities have a higher confidence in their overall retirement expectations, with nine out of 10 believing they are doing a good job preparing financially for retirement.
IRI’s released the survey results as part of National Retirement Planning Week. The study examines the impact of the recent recession on boomer retirement prospects, analyzes the age at which they expect to retire, and identifies their anticipated sources of income in retirement.
According to the IRI, this year marks the first of a nearly 20-year long retirement boom in American, as the first wave of the 79 million baby boomers enter retirement. For many boomers, however, retirement will look much different than they anticipated.
“Clearly boomers are lacking the confidence that they will be able to enjoy a financially secure retirement,” said Cathy Weatherford, IRI president and CEO, in a statement. “Now more than ever, we must come together to help educate all Americans on the importance of holistic retirement planning, putting them on a path to a brighter financial future.”
Other information from the “Boomer Expectations for Retirement” study include:
- The recent recession has had a significant impact on boomers’ thoughts on retirement savings and income. Nearly half of the survey respondents reported that recent economic changes made it more difficult for them to pay for essential items, and one-third stopped contributing to a 401(k), IRA, or other retirement accounts.
- More than one-third of pre-retirees indicated that they did not know the age at which they would retire.
- Three out of 10 boomers who are uncertain as to when they will retire are concerned about having sufficient assets.
- Many boomers expect to work during their retirement. More than half (57 percent) of pre-retirees expect that pay received from employment during retirement will represent a source of income.
- While two-thirds (61 percent) of boomers indentified a specific age at which they plan to stop work completely, nearly a quarter of them chose an age that does not make them eligible for full Social Security benefits.
- Forty-one percent of boomers view Social Security as a major income source during retirement, while 43 percent stated that it will only provide a minor source of retirement income.
- Only one-third of boomers expect personal savings and investments to play a major role in generating retirement income, a statistic that is consistent between younger and older boomers and indicates a strong, addressable market for individual retirement products.
- More than half (57 percent) of pre-retirees expect that pay received from employment during retirement will represent a source of income.
- Nearly 8 in 10 Boomers who own annuities have a higher confidence in funding long term care needs, with 86 percent stating they expect to live comfortably in retirement.