Three out of four middle-income baby boomers say their financial situation, not age, is now the key trigger for when to retire, according to a recent study.
The Middle-Income Boomers, Financial Security and the New Retirement study, by the Bankers Life and Casualty Company Center for a Secure Retirement, focused on 500 middle-income Americans between ages 47 and 65 with income between $25,000 and $75,000. The study found that one-third expect to retire after the traditional retirement age of 65, and 31% 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%) thought that they would be in a better financial position for retirement than they are now.
The study reports more than half (52%) are not confident that they have saved enough to live comfortably in retirement, 38% are only somewhat confident and only one in ten are confident that they will have enough money to live comfortably in retirement.
Although the adequacy of retirement income carries heightened importance for this generation of retirees, the study found that more than half of middle-income boomers have saved less than $100,000 for retirement, 19% have saved less than $10,000 and 14% do not have a pension, 401(k), IRA or any other type of retirement savings account.
The ups and downs of the economy have caused women to rethink their retirement age more so than men and according to the study, they will rely more heavily on their financial situation to decide when it is time to retire.
“On the new road to retirement, the majority of Americans can now retire only when they feel they can afford to do so,” says Bankers Life and Casualty Company president Scott Perry. “Now is the time to examine your financial expectations for retirement and make adjustments that can help to improve your financial security and, ultimately, the enjoyment of your retirement years.”
— This story originally ran in Accounting Today, a SourceMedia publication.
