September 04, 2012
--- Retirement confidence is high for both Baby Boomers
and Generation X, according to a report from the Insured Retirement Institute
(IRI). ---
IRI research shows 76.2% of Baby
Boomers and 78.2% of Generation Xers stated they were somewhat to extremely
confident they will have enough money to live comfortably throughout their
retirement years. However, only 51.4% of Baby Boomers and 40.7% of Generation
Xers have calculated how much they will need in retirement savings. Roughly
one-fifth (21.6%) of Baby Boomers and 40.8% of Generation Xers have less than
$50,000 saved for retirement; and 21.7% of Baby Boomers and 27.8% of Generation
Xers reported having no savings for retirement.
In addition, many members of both
generations (40.8% of Baby Boomers and 45.1% of Generation Xers) report they
are “not very” or “not at all” knowledgeable about investing in
securities.
The research found that working with
a financial adviser increases retirement confidence. Among Baby Boomers
who consulted with a financial adviser, 42.8% are extremely or very confident
compared with 32.3% of those who did not. Among individuals in Generation X who
consulted a financial adviser, 47.6% are extremely or very confident compared
with 28.9% of those who did not.
In
addition, those who have calculated their retirement savings needs have higher
levels of confidence in meeting their retirement savings goals. Among Baby
Boomers who completed the calculation, 44.2% are extremely or very confident
compared with 29.0% of those who did not. Among individuals in Generation X who
completed the calculation, 46.9% are extremely or very confident compared with
27.9% among those who did not.