Boomers Relying Too Heavily Upon Employment During Retirement Years

Alternative Plan Needed to Generate Retirement Income

WASHINGTON, D.C. - The Insured Retirement Institute (IRI) today released new research findings that reveal that Baby Boomers' expectations to continue working into their retirement years may not be as feasible as they believe. While almost two-thirds of Boomers are counting on employment during their retirement years as a source of income, several studies have found that half of workers exit the workforce prematurely.

"About half of retirees leave the workforce earlier than they planned because of, among other issues, health concerns or a lack of employment opportunities," IRI President and CEO Cathy Weatherford said. "As we live longer, it's becoming more commonplace to accept the idea that we have to work a few extra years. And rightfully so. But Boomers must reevaluate their plans and develop contingencies in case they cannot work as long as they intend. This evaluation requires identifying alternative sources of lifetime income."

According to IRI data, 35 percent of Boomers are planning to work into their late 60s and beyond--with 12 percent of Boomers planning to work into their late 60s and another 23 percent planning to work to 70 or later. Yet labor force participation rates in 2010 reveal that only 17.9 percent of those aged 65 and older were still in the workforce, according to the Bureau of Labor Statistics.

The full report can be found HERE.