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Many Boomers Not Saving Enough—Or Anything—For Retirement

March 14, 2016

Between 2011 and 2030, 10,000 baby boomers will hit retirement age every day. However, many of them will be ill-prepared to actually retire.

According to a recent Insured Retirement Institute survey, only 6 in 10 boomers report having any retirement savings, and just 27 percent are confident they will have enough money to last through retirement.

Other results from the survey found:

  • Almost a quarter of all boomers have had difficulty paying their mortgage or rent in the past 12 months.
  • More than one-third said they plan to put off retirement, stopping work at 70 or later.
  • Boomers’ overall economic satisfaction, despite several years of strong stock market performance, is at 48 percent, down from 65 percent in 2014 and 76 percent in 2011.

Single women seem to be the most affected by the retirement preparedness gap. According to the Employee Benefit Research Institute, among boomer households that aren’t ready for retirement, single women fall $104,821 short, compared to $93,576 for single men and $71,299 per individual in a family.

What’s behind the savings shortfall? Experts say a lack of retirement knowledge plays a large role. On average, workers scored a 4.1 out of 10 on their knowledge of retirement planning and saving, according to a survey by Voya Financial. Also not helping: stagnant incomes, the demise of pensions, and the limited availability of employer-sponsored 401(k) plans, especially for part-time employees.

Better retirement education efforts will likely be key for boomers as well as the generations that follow. A survey recently found that 1 in 10 Americans have saved nothing for retirement in the last two years, and Millennials were the most likely to say they had contributed nothing to a retirement fund.

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