The findings were part of a report, “Boomer Expectations for Retirement,” which also found that more than one-third of pre-retirees do not know the age at which they will retire. Similar uncertainty existed regarding assets; three out of 10 Boomers cited concern about having sufficient assets as a top issue for retirement preparedness, while over half said they will work for income in retirement (meaning they are not actually retired).
The report looks at the impact of the recession on Boomer retirement prospects, analyzes the age at which they expect to retire and identifies their anticipated sources of income in retirement.
“For many [Baby Boomers], retirement expectations have been hampered by recession-related financial difficulties. Uncertainty abounds as to when they can retire, if at all… Now more than ever, we must come together to help educate all Americans on the importance of holistic retirement planning, putting them on a path to a brighter financial future,” said Cathy Weatherford, IRI President and CEO.
Some data points from “Boomer Expectations for Retirement” include:
- The recent recession has had a significant impact on Boomers’ thoughts on retirement savings and income. Nearly half of the survey respondents related that recent economic changes made it more difficult for them to pay for essential items, and one-third stopped contributing to a 401(k), IRA or other retirement accounts.
- More than one-third of pre-retirees indicated that they did not know the age at which they would retire (three out of 10 Boomers who are uncertain as to when they will retire cited concern about having sufficient assets as a top issue).
- Many Boomers expect to work during their so-called retirement. More than half (57%) of pre-retirees expect that pay received from employment during retirement will represent a source of income.
- While two-thirds (61%) of Boomers indentified a specific age at which they plan to stop work completely, nearly a quarter of them chose an age that does not make them eligible for full Social Security benefits.
- Forty-one percent of Boomers view Social Security as a major income source during retirement, while 43% stated that it will only provide a minor source of retirement income.
- Only one-third of Boomers expect personal savings and investments to play a major role in generating retirement income, a statistic that is consistent between younger and older Boomers and indicates a strong, addressable market for individual retirement products.
- More than half (57%) of pre-retirees expect that pay received from employment during retirement will represent a source of income.
- Nearly eight out of 10 Boomers who own annuities have a higher confidence in funding long-term care needs, with 86% stating they expect to live comfortably in retirement.
The full IRI report is available here.