Baby Boomers and Generation Xers

Significant Number Of Boomers And Gen-Xers Falling Behind In March Toward Secure Retirement

IRI Study: Retirement Planning Indicators Show Many Could Be Jeopardizing Financial Security

WASHINGTON, D.C.
 - The Insured Retirement Institute (IRI) today released a new research report detailing--based on several common retirement planning indicators--how a financially secure retirement could be slipping away from significant numbers of Baby Boomers and Generation Xers. The report found that significant portions of these demographic groups have insufficient savings, lack investment knowledge, and have not taken important retirement planning steps such as calculating a retirement savings goal or consulting with a financial professional. 

"The good news is that when we dug deeper, we found that those who are working with a financial advisor and those who have determined how much savings they will need for retirement are more confident in having a financially secure retirement," IRI President and CEO Cathy Weatherford said. "But on the flip side, those who are not taking these retirement planning steps are lacking this confidence, and unfortunately, this includes many Baby Boomers and Gen Xers. And when you consider how many Baby Boomers and Gen Xers have low levels of savings or haven't saved at all, it presents a rather gloomy future for a significant number of Americans."

Regarding retirement savings, 21.7 percent of Baby Boomers and 27.8 percent of Generation Xers have no retirement savings. Of those who have saved and indicated their savings levels, nearly 40 percent of Baby Boomers and about two-thirds of Generation Xers have less than $100,000 saved for retirement.

Knowledge of investing also is an important measure of retirement planning competency as the majority of accumulated savings tends to be from investing earnings, assuming a career-long savings record. Regarding their knowledge of investment, 40.8 percent of Baby Boomers and 45.1 percent of Generation Xers reported that they are "not very" or "not at all" knowledgeable about investing in securities.

The report also found that:

  • Only 51.4 percent of Baby Boomers and 40.7 percent of Generation Xers have calculated how much they will need to save for retirement.
  • 52.8 percent of Baby Boomers and 62.5 percent of Generations Xers have not consulted a financial advisor.
  • Annuity owners have more confidence in their ability to live comfortably throughout retirement as 53.4 percent of Baby Boomer and 49.4 percent of Generation X annuity owners are extremely or very confident compared to 31 percent of Baby Boomer and 31.2 percent of Generation X non-owners.
  • Baby Boomer and Generation X annuity owners are more likely to engage in positive retirement planning behaviors. Of Baby Boomers, 73.7 percent of annuity owners consulted a financial advisor and 69.6 calculated their retirement savings needs compared to 34.8 percent and 44.3 percent of non-owners, respectively. For Generation Xers, 62.3 percent of annuity owners consulted a financial advisor and 60.4 calculated their retirement savings needs compared to 29.7 percent and 34.0 percent of non-owners, respectively.
The full report can be found HERE.