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Boomer Expectations for Retirement 2015 — Fifth Annual Update on the Retirement Preparedness of the Boomer Generation

April 22, 2015 Comments off

Boomer Expectations for Retirement 2015 — Fifth Annual Update on the Retirement Preparedness of the Boomer Generation (PDF)
Source: Insured Retirement Institute

Each year the Insured Retirement Institute (IRI) conducts a survey to measure the retirement preparedness of the Boomer generation. This report, the fifth in the series, summarizes the results of the 2015 survey and analyzes key changes over the past five years.

As Baby Boomers age, and as more members of the cohort are either in or very near retirement, the survey responses are changing. For an increasing number of Boomers, especially those that have not taken steps to plan effectively, retirement reality is not aligning with retirement expectations.

Overall satisfaction fell considerably in this year’s study, following a significant decline last year. However, respondents who have taken steps to prepare for retirement, such as working with financial advisors, calculating retirement goals, purchasing retirement income products such as annuities, and developing retirement plans report much higher levels of overall economic satisfaction and retirement preparedness. As we’ll see in the detailed study results, Boomers who have prepared, and have realistic expectations, for retirement are much more likely to report overall satisfaction, confidence in their retirement readiness, and progress toward a secure retirement.

The Long-Term Care Challenge: Developing a Plan Can Lead to Greater Confidence

December 11, 2012 Comments off

The Long-Term Care Challenge: Developing a Plan Can Lead to Greater Confidence (PDF)
Source: Insured Retirement Institute

With an aging society, the need for long-term care will grow. According to the Census Bureau, the number of individuals age 85 and older is projected to increase by 52% over the next 20 years. Census data also show that individuals age 80 and older are most at need for long-term care. In 2010, 71% had a disability, 56% had a severe disability, and 30% only needed some assistance with daily living. Another study shows among individuals age 65 in 2005, 69% will experience a need for some type of long-term care during the balance of their lives with the average duration of needed care reaching three years. IRI data shows that most Americans find these figures intimidating. Only 24% of Baby Boomers and 28% of Generation Xers (Gen-Xers) are extremely or very confident they will have enough money to cover their own long-term care expenses.

In addition to planning for their own long-term care needs, many American families are struggling to cope with the long-term care needs and expenses of their parents. IRI has found that confidence levels are even lower regarding the ability to meet the long-term care costs of parents. Among Boomers, IRI found that only 14% are extremely or very confident they will have enough money for the long-term care expenses of their parents and only 21% of Gen-Xers have that confidence.

The long-term care issue is not all doom and gloom. As with most aspects of life, these costs can be managed with proper planning. In fact, IRI has found that confidence levels increase when working with an advisor to develop a plan to meet the costs of long-term care. Among Boomers, for example, IRI found that confidence levels in having enough money for longterm care costs increased about 58% for those who work with an advisor. This report will present data on the costs involved with long-term care. It will examine confidence levels among Boomers and Gen-Xers, noting the particular concerns for women regarding long-term care. The report concludes with an overview of various government programs and financial products to help individuals cover the costs of long-term care.

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