Older Generations Need Help Preparing for Retirement

Forty-two percent of Gen Xers and Baby Boomers surveyed say they plan to mostly or entirely rely of Social Security.

More than three-quarters of Generation X and Baby Boomers strongly agree (38%) or somewhat agree (39%) that they need to save more to afford the retirement they want.

An Ipsos/USA Today poll of 1,205 adults ages 45 to 65 from the continental U.S., Alaska and Hawaii, found 68% have personal savings for retirement, 40% invest in stocks, 39% have a pension, 19% have annuities, 19% have bonds, and 13% hold securities. More than half (52%) of respondents said they contribute to a 401(k) plan, while 42% contribute to an individual retirement account (IRA), 14% contribute to a health savings account (HSA), and 10% contribute to a 403(b).

When asked how they intend to fund their retirement, 12% said they will almost entirely rely on Social Security, and 30% said they will mostly rely on Social Security. Forty-two percent said they will mostly rely on their own savings or benefits, and 17% said they will almost entirely rely on their own savings and benefits.

The majority of respondents expect to retire at age 70 or before; 17% at 60 or under, 26% at ages 61 to 65 and 22% at ages 66 to 70. Only 7% said they do not plan to retire. Only 17% feel very prepared for retirement, while 42% feel somewhat prepared. Nineteen percent feel somewhat unprepared, and 22% feel very unprepared.

Similarly, only 15% feel very confident they will have enough money to last through retirement, and 40% feel somewhat confident. Twenty-three percent feel not very confident, and 22% feel not confident at all. Seventy-eight percent strongly or somewhat agree that they will cut back on spending in retirement. Seventy-two percent somewhat or strongly disagree that their families will help support their retirement.

NEXT: How much have they saved?

Sixty-five percent are very or somewhat likely to put at least $100 toward retirement over the next six months, but 77% said they are very or somewhat likely to put at least $100 toward paying off debt.

Seven percent of Gen Xers or Baby Boomers reported they have less than $10,000 saved for retirement, and 11% have $10,000 to $49,999. Fourteen percent have $50,000 to $99,999, and 19% have $100,000 to $249,999. Twenty-three percent have $250,000 to $999,999, and only 7% have saved $1 million or more.

Among those who reported they had little in retirement savings, 59% said they don’t have or make enough money to save, while nearly one-quarter (24%) indicated they plan to rely on Social Security, and 19% said they have a pension. Eight percent said it is just not a priority right now, and 6% said they lack information regarding retirement.

Twenty-three percent reported that they use a financial adviser or broker to help plan their investments, savings or retirement, while 21% rely on the Internet and 20% use advice from family, friends or co-workers. Eighteen percent use a financial planner, and 11% turn to newspapers or magazines.

More findings from the study are here.