Thursday, October 20, 2011
Middle Income Baby Boomers Wish They Had Budgeted More for Retirement
9:40 AM | 
Posted by
pensionfinancialservices |
Three out of four middle-income Baby Boomers say their financial “situation” --not their age, is now the key trigger for deciding when to retire, said a recent article in Accounting Today.
The findings came from a study: Middle-Income Boomers, Financial Security and the New Retirement study, conducted by the Bankers Life and Casualty Company Center for a Secure Retirement. The study looked at 500 middle-income Americans between ages 47 and 65 with income between $25,000 and $75,000. One-third of those studied expect to retire after the traditional retirement age of 65 and 31 percent are uncertain at what age they will be able to retire.
A majority of middle-income Boomers feel that they are behind where they had expected to be at this point in their lives in terms of saving for retirement. Two in three (67 percent) thought that they would be in a better financial position for retirement than they are now.
The study reports more than half (52 percent) are not confident that they have saved enough to live comfortably in retirement, 38 percent are only somewhat confident and only one in ten (10 percent) are confident that they will have enough money to live comfortably in retirement.
“This is why it’s ever important for companies to have retirement vehicles for their employees – and there are so many types now that can really benefit a small-to-mid-sized business tax-wise,” says Kevin McCormack, President, Pension Parameters Financial Services. ”It’s also a message to the generations behind the Boomers to set aside retirement money. As long as they are saving and investing some amount they will have the opportunity to increase their retirement income. Certainly contributing something, rather than nothing, is the key to making it happen.”
The findings came from a study: Middle-Income Boomers, Financial Security and the New Retirement study, conducted by the Bankers Life and Casualty Company Center for a Secure Retirement. The study looked at 500 middle-income Americans between ages 47 and 65 with income between $25,000 and $75,000. One-third of those studied expect to retire after the traditional retirement age of 65 and 31 percent are uncertain at what age they will be able to retire.
A majority of middle-income Boomers feel that they are behind where they had expected to be at this point in their lives in terms of saving for retirement. Two in three (67 percent) thought that they would be in a better financial position for retirement than they are now.
The study reports more than half (52 percent) are not confident that they have saved enough to live comfortably in retirement, 38 percent are only somewhat confident and only one in ten (10 percent) are confident that they will have enough money to live comfortably in retirement.
“This is why it’s ever important for companies to have retirement vehicles for their employees – and there are so many types now that can really benefit a small-to-mid-sized business tax-wise,” says Kevin McCormack, President, Pension Parameters Financial Services. ”It’s also a message to the generations behind the Boomers to set aside retirement money. As long as they are saving and investing some amount they will have the opportunity to increase their retirement income. Certainly contributing something, rather than nothing, is the key to making it happen.”
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