The Insured Retirement Institute (IRI) has kicked off National Retirement Planning week with a release of findings of its 7th annual survey of Baby Boomers.
Cathy Weatherford, president and CEO, IRI, said during a media call, “We want to spark a national conversation about holistic retirement planning. We want to encourage Americans to save and equip them with resources to help them.”
Weatherford noted that the survey found 46% of Baby Boomers say they have no retirement savings—the highest percentage recorded in seven years. “Time is running out for Boomers, and we don’t get do-overs. “It’s imperative that Boomers start saving now, and we hope this week sparks that,” she said.
She also noted the survey found slight increases in contributions to 401(k)s and IRAs, and 59% of Boomers are planning to retire at 65 or later. “Boomers are gaining clarity on what retirement entails and setting retirement dates to reflect that,” she says. Weatherford added that roughly 60% have saved $100,000, but notes with that, they will still end up with a shortfall.
Asked what they wish they had done differently, Boomers said they wish they had saved earlier and saved more, she noted.
As they move into their pre-retirement and retirement years, most Boomers report insufficient retirement savings, and have not taken appropriate steps to plan effectively for their sunset years, the survey found. Only four in 10 have tried to calculate how much they need to save to retire, and of these only six in 10 included estimates of health care costs in their calculations.
Only 23% believe their savings will last throughout retirement, or that they have done a good job preparing for retirement. Paradoxically, however, six in 10 Boomers believe their retirement income will cover their basic expenses, with at least some leftover for travel and leisure activities. This disconnect between savings, confidence and expectations could result in many Boomers exhausting their financial resources during retirement, IRI says. NEXT: Using a financial adviser helps