Researchers recently found that the Baby Boomers generation is showing a lack of confidence regarding retirement plans. They noted that this trend started in 2011 when they began tracking this group’s views and expectations. Between the two points in time, that generation’s confidence dropped from nearly 45 percent to 35 percent. Although their subjects’ confidence keeps falling, researchers said there were some improvements with important issues such as the number of people who were saving for retirement and the total amount of their savings. In addition to that, they said this generation also showed a great interest in setting savings goals and target retirement ages.
Experts said that one of the most notable findings in their research was the declining number of people who were unsure about what age they would retire. The number decreased to half of what it originally was, and researchers said their findings showed people were retiring later in life. However, they were pleased to see that their survey subjects were looking at the most important elements of retirement and taking steps to develop plans of action as well as looking at retirement more realistically.
Although this generation’s economic outlook is not good, the people are showing hope that their finances will recover and improve. More than 40 percent of participants said they expected improvements within five years, which was up from slightly more than 30 percent one year prior to that. Researchers also found that about 25 percent of participants put off plans to retire. Nearly 30 percent said they would retire after reaching the age of 70. About 10 percent had already reported withdrawing money from retirement plans within the last year. Another 80 percent said they had retirement savings accounts. Nearly 50 percent who had savings accounts had more than $250,000 set aside.
More than 50 percent of Baby Boomers reported having a savings goal, which was a 50 percent increase from the prior year’s tally. From the amount of people with retirement savings goals, more than 75 percent were factoring in health care costs. About 75 percent of this generation said tax deferral was important for retirement investments. Slightly less than 40 percent said they would not be as likely to save if there were no tax incentives or if tax incentives were reduced. Those who use the services of financial advisers are two times as likely to be confident about retirement planning as those who do their own planning.
The survey was based on 800 participants who were between the ages of 51 and 67. While the results showed that seniors improved in this area, it is still important for everyone to ensure they are adequately prepared for retirement. The first step is developing a solid plan, so contact ACBI to discuss any concerns.