Finally Feeling Better About Retirement, Optimistic Baby Boomers Offer Lessons for Younger Generations
Retirement
Although most Americans still share concerns about retirement. Including nearly two-thirds (63%) who fear running out of money in retirement more than death. Baby boomers are finally showing signs of optimism about their retirement readiness, according to a new study, “Generations Ahead,” from Allianz Life Insurance Company of North America. More than seven in 10 boomers (72%) said they feel financially prepared for retirement, an increase of almost 15 percentage points from 2010. In addition, less than one-third of boomers (32%) said uncertainty about their financial future makes it difficult to know when they can stop working, an improvement from 2010 when half (50%) said they were unsure about when they could retire, if ever.
What do studies say Retirement..
The study of 3,000 Americans – including 1,000 baby boomers (ages 52-70), also found that fewer boomers today. Think it is “impossible” to determine retirement expenses (50%, down from 60% in 2014) and fewer believe they lack the tools to figure out the retirement puzzle (36%, down from 46% in 2014).
“The study highlights encouraging news for boomers and proves that with proper focus and engagement. Anyone can turn around a poor savings situation and start building for a successful retirement,” said Paul Kelash, vice president of Consumer Insights for Allianz Life. “Whether taking lessons from the past or forging a new path, the key for each generation is to recognize that a solid retirement plan doesn’t happen by chance, but rather with a clear process and defined actions.”
A new frugality has taken hold with baby boomers that is leading to a stronger sense of financial preparedness and confidence than seen in previous Allianz Life studies. With 64% of boomers noting themselves as “savers” rather than “spenders,” and 61% saying they always know exactly how much money is in their accounts. The formerly free-spending boomers of the “Me” generation have embraced the financial habits of their Depression-era parents – so much so that a full quarter of boomers now describe themselves as “penny pinchers.”
These traits have more boomers thinking seriously about saving for retirement. With nearly two-thirds (65%) saying they see it as a basic necessity like food or housing (versus 58% millennials and 53% Gen X). This new frugal mindset has also contributed positively to their bottom line, with boomers having the highest median amount in retirement savings among all three generations at $175,000, and a full third of boomers saying they have $250,000 or more earmarked for life after work.
Paul Kelash Bio:
As vice president of Consumer Insights, Paul Kelash and his team provide both financial professionals and consumers with valuable insights about planning for retirement via groundbreaking research studies.
Prior to joining Allianz Life in 2010, Kelash served financial services clients as vice president of Weber Shandwick. Before that, he led external and internal communications at Thrivent Financial. Served as a communications consultant at GCI Tunheim, and was a communications strategist for Barclays Global Investors. Kelash began his career at American Banker as a journalist.
Kelash earned his master’s degree in foreign affairs from the University of Virginia and bachelor’s degree in English from the University of St. Thomas. He holds a Series 7 securities registration.
Category: Baby Boomer, Retirement Planning
