Top Financial Goal for Boomers is Lifetime Income

On average, baby boomers expect to retire by age 63; however, most are not planning for 30 or more years in retirement and nearly half (44%) have not calculated a target income goal.
However, the vast majority (97%) of baby boomers responding to a recent survey by AIG SunAmerica cited income for life as a financial goal. Other top financial goals were protection against losses (96%) and continued growth of assets (96%), according to a press release about the survey.
Among Matures (age 60+) surveyed the highest rated financial goal was protection against losses (98%), the release said. Just over two-thirds of respondents in this group said they would consider a financial product that balanced growth potential with downside protection and income guarantees. Half said they would be willing to pay up to 2% of annual investment returns for the product.
Asked if they would consider an investment product designed to address all three goals, nearly three-quarters (73%) said yes, with two-thirds (66%) saying they are willing to give up 2% of their annual investment return for the benefits.
Nearly eight out of 10 baby boomers rated “a significant retirement income source, other than Social Security, that is guaranteed for life” as very or extremely important. More than three-fourths reported they would increase their holdings in the stock market if they knew their investment could be protected from loss.
Likewise, the majority (95%) of Matures said they consider a source of guaranteed income for life other than Social Security important, with 70% saying it is very important.
The average age of retirement for Matures was 60. With 85% of this group already retired, Matures expressed particular concern about the impact of rising health care costs and inflation on their retirement income planning.
The “America Speaks Out on Retirement: 2007 Investor Research Study” survey was conducted online within the U.S. by Harris Interactive on behalf of AIG SunAmerica between April 3-9, 2007 among 1,022 adults age 45 and over, of whom 512 were 45-60 and 510 were over age 60. Respondents had investable assets between $100,000 and $2 million (excluding 401(k) assets), and were financial decisionmakers.