Slow Economic Recovery Adding a Barrier to Saving for Retirement

Study Finds Tax Increases Could Present a New Obstacle to Already Struggling Boomers

WASHINGTON, D.C. – The Insured Retirement Institute (IRI) today released a new research report indicating that the recession and slow recovery are preventing Baby Boomers from adequately saving for retirement. IRI found that during the past year, nearly 30 percent of Boomers stopped contributing to a retirement plan, and 16 percent prematurely withdrew funds from a retirement plan.

Low and inadequate savings are currently pervasive among Boomers, with 22 percent having no retirement savings. Among Boomers who reported a retirement savings level, nearly 40 percent have saved less than $100,000.

“At a time when a quarter of Boomers reported difficulty paying the rent or the mortgage, it is easy to understand why saving for retirement has taken a back seat,” IRI President and CEO Cathy Weatherford said. “But as the economy recovers, it will be imperative that Boomers get back on the path toward a financially secure retirement. Working with a financial advisor could be just the ticket, as 43 percent of Boomers who have consulted a financial advisor have the highest levels of confidence in achieving financial security throughout their retirement years.”

IRI also found that potential tax increases could add a new obstacle to saving for retirement. More than half of Boomers would be less likely to save for retirement if federal income taxes were increased. Additionally nearly 40 percent would be less likely to save if capital gains taxes were increased, and 36 percent would be less likely to save if Social Security taxes increased. If incentives to save for retirement, such as tax-deferred growth for retirement plans and annuities, were to be reduced or eliminated, a quarter of Boomers would be less likely to save for retirement.

For the full report, click HERE.

About the Insured Retirement Institute: The Insured Retirement Institute (IRI) is a not-for-profit organization that for twenty years has been a mainstay of service, commitment and collaboration within the insured retirement industry.  Today, IRI is considered to be the authoritative source of all things pertaining to annuities, insured retirement strategies and retirement planning. IRI proudly leads a national consumer education coalition of nearly twenty organizations and is the only association that represents the entire supply chain of insured retirement strategies: Our members are the major insurers, asset managers, broker dealers, and more than 150,000 financial professionals. IRI exists to vigorously promote consumer confidence in the value and viability of insured retirement strategies, bringing together the interests of the industry, financial advisors and consumers under one umbrella. IRI’s mission is to: encourage industry adherence to highest ethical principles; promote better understanding of the insured retirement value proposition; develop and promote best practice standards to improve value delivery; and advocate before public policy makers on critical issues affecting insured retirement strategies and the consumers that rely on their guarantees. Visit today to experience the vast resources of the Insured Retirement Institute for yourself.     

-- END --