The Insured Retirement Institute (IRI) released a new report today showing Baby Boomers’ confidence in their financial preparations for retirement has been steadily dropping since 2011.National Retirement Planning Week®, April 7-11, is a national effort to help consumers focus on their financial needs in retirement.
“Preparing for and financing one’s retirement can be daunting and seem difficult, but it doesn’t have to be,” said Oklahoma Insurance Commissioner John D. Doak. “Changes in employee benefits, uncertainty with Social Security and Medicare, as well as the rising cost of health care have all contributed to the decline in consumer confidence. Being proactive and determining a strong financial plan for retirement can restore confidence and build savings for those post-working years.”
According to the IRI report, 10,000 Baby Boomers enter their retirement years each day and are largely unsure of their financial future. The National Retirement Planning Coalition organized National Retirement Planning Week® in an ongoing effort to educate Americans on retirement planning and demonstrate that it is possible to “Retire On Your Terms” if comprehensive retirement plans are properly developed and managed.
Baby Boomers are beginning to show optimism that their financial situation will improve, with 42 percent of Boomers expecting things to improve in five years, compared to 33 percent of Boomers who shared this view in 2013. Other key findings from the report include:
• A quarter of Boomers postponed their plans to retire during the past year.
• 28 percent of Boomers plan to retire at age 70 or later.
• One in 10 Boomers prematurely withdrew savings from a retirement plan during the past year.
• 80 percent of Boomers have retirement savings.
• About one-half of Boomers with retirement savings have $250,000 or more saved for retirement.
• 55 percent of Boomers have calculated a retirement savings goal, up from 50 percent in 2013.
• Of those calculating a retirement savings goal, 76 percent are factoring in the cost of health care.
• Three in four Boomers say tax deferral is an important feature of a retirement investment.
• Nearly 40 percent of Boomers would be less likely to save for retirement if tax incentives for retirement savings, such as tax deferral, were reduced or eliminated.
• Boomers planning for retirement with the help of a financial advisor are more than twice as likely to be highly confident in their retirement plans compared to those planning for retirement on their own.
The entire report, “Boomer Expectations for Retirement 2014,” is available online at http://myirionline.org/.