Today, about four in 10 (39%) members of the Boomer generation identify themselves as fully retired. But for the generation caught in the transition from institutional responsibility for retirement financial security to an increasing amount of individual responsibility, most Boomers have not done enough to adequately prepare for their retirement years. In fact, 69% of Boomers admit that they don’t have or don’t know if they have the financial resources to comfortably make it to age 85, the average life expectancy of a 65-year-old Boomer today.
Boomers are making adjustments to meet the new financial challenges they are facing in retirement. The Boomer experience may provide a cautionary tale for generations to follow. More education, more advice and guidance and ultimately more saving for retirement will be necessary for people to live comfortably in their retirement years.
Eight in 10 (80%) retired middle-income Boomers are relying on Social Security or an employer pension to be their primary source of retirement income, while one in 10 (12%) rely on personal investments, savings, or employment as their primary source of retirement income.
Other than contributing to a retirement account or savings, only six in 10 (61%) middle-income Boomers have taken steps to plan their retirement.
Seven in 10 (69%) Boomers do not believe or do not know if they have enough money to live comfortably to age 85.
Three in 10 (28%) middle-income Boomers say that they devote more than 40% of their monthly income to debt.