The Insured Retirement Institute (IRI) today released a new report showing that Baby Boomers’ confidence in their retirement plans continues to decline, a trend dating back to 2011, when IRI first began tracking Boomers’ retirement expectations. During that time, the percentage of Boomers showing high levels of confidence in their financial preparations for retirement dropped from 44 percent to 35 percent. But while confidence continues to slip, IRI found slight improvements in several important measures, including the percentage of Boomers (51-67) with retirement savings, their total savings, as well as the number of Boomers with a retirement savings goal and a planned retirement age.
While Boomers’ current economic outlook has also soured, they 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:
- 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 IRI study is based on a survey of 800 Americans aged 51 to 67.