Baby boomers are less confident and less prepared for retirement.
Approximately 35 million of the 76 million Baby Boomers lack any retirement savings today, according to the Boomer Expectations for Retirement 2016 report from the Insured Retirement Institute (IRI). Furthermore, almost half of those with savings have not made any additional contributions in the past year.
“Those with little or no savings will need to work longer or transition to part-time employment – if they can and if it’s available,” according to the sixth annual report. “They also will need to lower their expectations, and downsize significantly or they risk exhausting what financial resources they do have. The next 20 years may bear witness to some interesting and creative solutions for Boomers.”
The majority of boomers, 59 percent, plan to retire after age 65, including 26 percent who plan to retire after age 70.
The percentage of baby boomers who are satisfied with how their lives are going from an economic perspective has been steadily declining from 79 percent in 2012 to a record low 43 percent in 2016.
Boomers are less confident about almost every aspect of retirement this year compared to 2012:
- 24 percent are confident they will have enough money throughout retirement, down from 36 percent.
- 22 percent believe they are doing a good job preparing financially for retirement, down from 41 percent.
- 27 percent believe they will have enough money for healthcare expenses, down from 37 percent.
- 16 percent believe they will be able to pay for the costs of long-term care, down from 24 percent.
Read the full report here.