A new retirement study released by the Insured Retirement Institute (IRI) indicates that even as the economy recovers following the recession, most baby boomers are losing confidence in their ability to retire comfortably. Just one-third of respondents to the study said that they have the financial resources to retire comfortably while 35 percent expressed confidence in their financial preparation for retirement. Confidence fell from last year when 34 percent of respondents reported having sufficient retirement income and 37 percent were confident in their preparation.
However, some key measures saw some slight improvements. For one, more baby boomers reported having retirement savings compared to last year while their total savings and the number with a retirement savings goal also increased. Additionally, boomers are beginning to show optimism that their financial situation could improve with 42 percent expecting improvement within five years. In 2013, 33 percent of baby boomers held this view.
“One of the most striking developments since we began this research series is the decline in Boomers who did not know when they would retire,” IRI President and CEO Cathy Weatherford said. “That number has been cut in half. While the research shows that they are deciding to retire later in life, the important thing is that they are grappling with important aspects of retirement planning and beginning to develop a clearer picture of where they are and where they intend to be.”
Other findings include:
• 25 percent of boomers have postponed their retirement during the past year.
• 28 percent plan to retire at 70 or later.
• 10 percent of boomers prematurely withdrew savings from a retirement plan during the past year.
• 80 percent have retirement savings.
• About half with savings have at least $250,000 saved for retirement.