Baby boomers are less confident in 2013 than in 2012 that they are doing a good job preparing for retirement, a new survey shows.
The Insured Retirement Institute, Washington, D.C., published this finding in its “Third Annual Report on Retirement Preparedness of the Boomer Generation.” IRI commissioned Woelfel Research Inc. to conduct the survey through online telephone interviews with 802 adult Americans ages 50 to 66.
According to the report, just 37 percent of boomers are “extremely” or “very” confident that they are preparing adequately for retirement. This compares with 41 percent in 2012 and 44 percent in 2011.
Similarly, the survey shows a decline in the proportion of boomers who say (1) that they will have enough money to pay medical expenses in retirement (34 percent in 2013 vs. 37 percent in 2012 and 2011); and (2) that they will have enough money to live comfortably throughout their retirement years (34 percent in 2013 vs. 36 percent in 2012 and 37 percent in 2011).
The IRI data also shows that boomers’ expectations of their financial situation in five years have changed little since 2012. More than four in 10 respondents (42 percent) think their financial situation in five years will remain the same as today. There was no noticeable change between 2012 and 2013 among those who believe their financial situation will be better or worse off in five years.
The survey reveals that working with a financial advisor can increase one’s retirement expectations: Nearly half of the boomers polled (48 percent) who say they are doing a good job preparing financially for retirement work with an advisor. This compares to 28 percent of respondents who don’t work with an advisor.
The survey also points up a measurable retirement confidence gaps when boomers are asked whether they:
(1) and their spouse will have enough money to live comfortably throughout their retirement years (42 percent among boomers who work with an advisor versus 29 percent who don’t);
(2) will have enough money to pay medical expenses during retirement (38 percent vs. 32 percent, respectively);
(3) will have enough money to pay for long-term care (32 percent vs. 21 percent).