Many middle-income Americans were overwhelmed by the impact of 2008 financial crisis and recession. Their incomes decreased, their home values fell, and they lost their wealth. Even now as unemployment is low and the stock market booms, many middle-income Boomers say they haven’t felt the benefits of a recovery.
Today, Baby Boomers are redefining retirement in reaction to the financial crisis. Many Boomers are delaying retirement or are planning on relying on Social Security benefits as their primary source of retirement income. However, Social Security was never designed to fully replace one’s savings or wages.
Despite retirement challenges, almost all middle-income Boomers still believe they will retire someday. What makes them so optimistic even though they claim they have not benefited from the economic recovery?
The following report examines the Baby Boomer retirement crisis. It looks at how Boomers are redefining retirement, facing retirement challenges, and how they are faring 10 years after the impact of 2008 financial crisis. Through Baby Boomers retirement savings statistics, this report shares how the financial crisis has affected their confidence, their behaviors and what Baby Boomers want in retirement.
While half (51%) of middle-income Boomers feel the economy has recovered somewhat from 2008 financial crisis consequences, only 2% feel the economy has fully recovered, and nearly half (47%) do not believe the economy has recovered at all.
Two-thirds (65%) of all middle-income Boomers do not feel they have personally benefited from any economic recovery.
The crisis has created many retirement challenges for Boomers. Only about one-third (31%) of middle-income Boomers feel well prepared or very well prepared for retirement, down from four in 10 (41%) before the financial crisis.
Two-thirds (68%) of middle-income Boomers are worried about another financial crisis in their lifetime. The blow would mean many Baby Boomers can’t afford to retire.