Insurers selling retirement products may tailor their presentations based on the results of a new study that states three out of four (73%) of American middle-income baby boomers say that their financial situation, not age, will determine when they will retire. The study was conducted by
The Middle-Income Boomers, Financial Security and the New Retirement study, which focused on 500 middle-income Americans between ages 47 and 65 with income between $25,000 and $75,000, 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 and two in three (67%) thought that they would be in a better financial position for retirement than they are now.
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.
The CSR's 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 (10%) 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 percent do not have a pension, 401(k), IRA or any other type of retirement savings account.
"On the new road to retirement, the majority of Americans can now retire only when they feel they can afford to do so," said Scott Perry, president of Bankers Life and Casualty Company, a national life and health insurer. "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."
The complete report can be viewed at
