Retirement Sins: Baby Boomer Edition

 

How prepared are you for retirement? Since 2011, the Insured Retirement Institute (IRI) has conducted a study every year on baby boomers aged 56 to 72 to reveal their readiness for retirement. According to this year’s study on the generation, only 55% of boomers have any money saved for retirement1.

Some of the mistakes made by the people of this generation can be referred to as the “7 Deadly Sins of Retirement” according to MarketWatch.com:

  1. Not saving enough money – or any money at all, for that matter
  2. Spending and/or tapping into your retirement savings
  3. Neglecting to calculate your retirement savings goal
  4. Underestimating health costs
  5. Disregarding long-term care costs
  6. Mishandling your retirement date
  7. Not setting proper affairs in order

Despite the alarming realities of retirement preparedness, eight in 10 boomers still believe that it is important to have guaranteed sources of income for life, like annuities. In fact, one of the greater takeaways of the study is that annuities are one of the driving forces behind confidence in retirement; the percentage of boomers who believe their retirement savings will last through retirement are more than double amongst those who have annuities versus those who do not.

Another overall consensus of this year’s study on baby boomers is that financial advisors provide the people of this generation with the direction, products, plans, tools and ultimately the confidence they need to navigate to and through retirement. Boomers feel that they have a greater chance of succeeding during retirement when working with a financial advisor than those who do not.

 

 

In fact, seven in 10 boomers who work with a financial advisor have a retirement goal calculated and six in 10 annuity owners feel “excited and confident” or “happy and cautiously optimistic” about retirement as compared to boomers without advisors or annuities.

How confident are you in your retirement strategy? Learn more about how to implement a strategic plan for retirement that will help ensure you never run out of money. Contact Eric Scott Financial at 435.773.9444.

 

Sources:

1 https://myirionline.org/docs/default-source/default-document-library/iri_babyboomers_whitepaper_2019_final.pdf?sfvrsn=0

2 https://www.marketwatch.com/story/baby-boomers-commit-the-7-deadly-sins-of-retirement-planning-2019-04-09