A report released by the Insured Retirement Institute (IRI), "The Great Divide: Financial Comparison of Early and Late Boomers' Retirement Preparedness," shows those on the tail end of the Boomer category will be confronted with added challenges and be less prepared financially to overcome them.
The report found that while the percentage of all Boomers who are confident they have sufficient funds to cover their retirement years sank to 34% this year, results varied within the broader group. Early Boomers, ages 61 to 66, were slightly more optimistic, with 42% believing they have enough savings to live comfortably throughout retirement. But for late Boomers, ages 50 to 55, only 25% shared this confidence.
Other findings from the report include:
- While savings are lagging for both groups, 47% of late Boomers reported having less than $100,000 saved for retirement, compared with 32% of early Boomers;
- Forty-three percent of late Boomers identified a DC plan as a major source of retirement income, compared with 36% of early Boomers;
- Insufficient savings is the most common reason late Boomers are uncertain as to when they will retire, as stated by 27% of those surveyed. By contrast, the most common reason for the uncertainty among early Boomers, as stated by 20%, is that they enjoy working;
- Of late Boomers, 31% are struggling to pay their rent or mortgage, and 34% are financially supporting an adult child, compared with 20% and 21%, respectively, of early Boomers; and
- More late Boomers remain in the labor force, 80%, compared with only 43% of early Boomers.