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Workers Need Planning Help Through Retirement

The Insured Retirement Institute (IRI) released a new report showing Baby Boomers’ confidence in their plans for retirement continues to decline.

During a press call to kick off National Retirement Planning Week, Danielle Holland, senior vice president with the Insured Retirement Institute (IRI) said its recent study showed the percentage of Baby Boomers with no to low confidence increased from 23% in 2011 to 31% in 2014. In addition, those who said they are satisfied economically decreased from 77% in 2013 to 65% in 2014. One-quarter of Baby Boomers polled reported they postponed plans to retire within the last 12 months.

Holland noted that those working with an adviser are more confident. She said it is perhaps because, 94% of those working with, or who have worked with, an adviser have some retirement savings compared to 68% without an adviser, and 74% of those with an adviser have determined a savings goal, compared to 40% without an adviser.

The Employee Benefit Research Institute’s (EBRI) Retirement Confidence Survey (RCS) found Americans’ confidence in their ability to afford a comfortable retirement has recovered somewhat from the record lows of the past five years, but that result is among workers of all ages. And, Nevin Adams, director of the American Savings Education Council (ASEC) and co-director of the Employee Benefit Research Institute (EBRI) Center for Research on Retirement Income, shared in the press call that results from the RCS show retirement confidence is higher for those with an employer-sponsored retirement plan, and workers with an employer plan have more in savings than those without (see “Retirement Plan Offering Strongly Linked to Confidence”).

According to Rich Linton, president of Individual Markets at ING U.S. Retirement Solutions, there are many risks Americans do not think about when planning for retirement. He noted ING U.S. research found more than half (57%) of retirees face unexpected challenges, most often with managing savings and unexpected health issues. In addition, less than half of pre-retirees (42%) and retirees (44%) have a plan to manage their income in retirement.

Rebecca Moore editors@plansponsor.com