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Boomer Expectations for Retirement 2015

“Boomer Expectations for Retirement 2015 – Each year the Insured Retirement Institute (IRI) conducts a survey to measure the retirement preparedness of the Boomer generation. This report, the fifth in the series, summarizes the results of the 2015 survey and analyzes key changes over the past five years. As Baby Boomers age, and as more members of the cohort are either in or very near retirement, the survey responses are changing. For an increasing number of Boomers, especially those that have not taken steps to plan effectively, retirement reality is not aligning with retirement expectations. Overall satisfaction fell considerably in this year’s study, following a significant decline last year. However, respondents who have taken steps to prepare for retirement, such as working with financial advisors, calculating retirement goals, purchasing retirement income products such as annuities, and developing retirement plans report much higher levels of overall economic satisfaction and retirement preparedness. As we’ll see in the detailed study results, Boomers who have prepared, and have realistic expectations, for retirement are much more likely to report overall satisfaction, confidence in their retirement readiness, and progress toward a secure retirement.

KEY OBSERVATIONS
  • Overall economic satisfaction among Boomers dropped precipitously in 2015, to 48% from 65% in 2014 and further down from 76% in 2011.The decline in overall satisfaction was more pronounced among retirees, plunging to 45% from 72% in 2014, versus 53% of working Boomers feeling satisfied compared to 60% in 2014. These results suggest there may be widespread dissatisfaction developing among Boomers as large numbers of them transition into their pre-retirement and retirement years.
  • Only six in 10 Boomers report having money saved for retirement, down sharply from prior years when approximately eight in 10 had retirement savings. A significant number of Boomers continue to struggle financially; in the past 12 months
  • Almost one-quarter of Boomers reported that they have had difficulty in paying their mortgage or rent.
  • 19% of working Boomers stopped contributing to a retirement account such as a 401(k) or IRA.
  • 24% of Boomers postponed plans to retire.
  • The percentage of Boomers feeling extremely or very confident they will have enough money to last throughout retirement has declined significantly, to 27% of Boomers in 2015 from almost four in 10 in 2011.”

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