An Insured Retirement Institute (IRI) survey maintains retirement anxiety is growing among Baby Boomers, outlining 45 percent of Boomers have zero savings for their golden years.
The analysis determined little to no retirement savings has forcing more Boomers to postpone retirement and many are underestimating the amount of annual retirement income needed while holding unrealistic expectations regarding the impact health and long-term care costs may have on their retirement budgets.
The analysis also revealed of Baby Boomers with retirement savings, more than half have saved less than $250,000 while the average annual Social Security income a retired couple can expect is about $28,000 per year.
The average couple age 65 to 74 today spends about $55,000, and only 30 percent of Boomers believe they will need $55,000 annually or more in retirement income.
Survey results showed too few Boomers are taking advantage of annuities, the one available product officials said can provide protected lifetime income. The breakdown determined two-thirds of Boomers who do not have an annuity cite insufficient savings or lack of knowledge as a reason for not owning one.
The IRI survey results revealed two factors contribute to greater retirement confidence – Boomers who work with a financial advisor and/or own an annuity are two to three times more likely to believe they did an effective job planning for retirement and that their income will last throughout retirement.
Boomers who work with an advisor and/or own an annuity are significantly more confident that their retirement savings will last at every age milestone from 75 to 90 years.