The number of baby boomers who are confident in their efforts to prepare financially for retirement has dipped to 35 percent in 2014 from 44 percent in 2011, according to a new report.
The Insured Retirement Institute discloses this finding in “Boomer Expectations for Retirement 2014.” IRI’s fourth annual report on retirement preparedness of the boomer generation highlights key changes and trends that have developed since the inception of the research series in 2011.
Also reflecting reduced expectations, the report indicates that the percentage of boomers who are confident they will have enough money to live comfortably throughout their retirement years has dropped to 33 percent in 2014 from 37 percent in 2011.
“[I]t is not only a decline in those showing high levels of confidence that has emerged,” the report states. “This year’s study measured a noticeable increase among those showing little-to-no-confidence at all regarding their retirement plans and outlook.
“Those with little-to-no confidence that they will have sufficient assets to live comfortably in retirement surged to 29 percent in 2014 from 19 percent in 2013, while those with little-to-no confidence in their retirement preparations jumped to 31 percent in 2014 from 22 percent in 2013,” the report adds.
The research additionally observes a drop in survey respondents’ happiness with the financial outlook. This year, nearly two-thirds of respondents expressed satisfaction from an economic standpoint, whereas 32 percent expressed dissatisfaction. This compares with 77 percent and 19 percent, respectively, who exhibited satisfaction and dissatisfaction last year.
The report observes, however, “tempered optimism” about the five-year financial outlook. More than four in 10 respondents (42 percent) expect their financial situation to improve somewhat (34 percent) or greatly (8 percent) in the next five years. These results compare with 34 percent and 8 percent, respectively, in 2013.
Turning to pocketbook issues, the report shows that one-quarter of not-yet retired boomers say they postponed their plans to retire — the highest percentage (as noted below) since the start of the research in 2011:
- 25 percent (2014)
- 21 percent (2013)
- 21 percent (2012)
- 24 percent (2011)