Nearly a third of those who were born between the years of 1946 and 1964 have revised their retirement plans and now intend to work at least four years beyond the traditional retirement age of 65.
That, according to a report issued by the Natixis Investment Managers group, which has offices in Boston, may be due to a lack of savings on the part of a big generation that is made up of more than 76 million people.
The report, Retirement Reality Report, notes that while Baby Boomers have been a “dominant part of the workforce for 40 years,” they have only in recent years been concerned with significantly building their savings reserves.
As a result, some 47 percent of Baby Boomers interviewed for the report expressed regret over not having saved for retirement earlier, with another 35 percent wishing they had contributed more to their retirement accounts.
The report adds that the “Average 64 year-old Baby Boomer has accumulated just 30 percent of the $1 million savings they say they’ll need to fund a comfortable life in retirement.”
Those who, at 64 years of age, have fallen short of that figure, have “already extended their projected retirement age to 69, but would still need to save more than $142,000 a year to reach their stated goal.”
Interestingly, those who belong to the Millennial Generation, born between 1981 and 1996, have launched savings plans earlier in life than did the Baby Boomers. They also expect to retire earlier, at age 61, and have an overall lower savings goal of $822,000 for their retirement years.
The study additionally indicated that Baby Boomers regard, beyond daily living expenses, credit card debt and housing costs as their greatest financial burdens. Millennials mentioned ongoing student loan debt and childcare costs as also contributing to their burdens.
Perhaps not surprisingly, both demographic groups expressed little confidence that Social Security benefits would be plentiful enough for their retirement years.
In a statement summing up the report’s findings, Ed Farrington, vice-president of retirement strategies at Natixis, said that there needs to be a greater coordinated effort among “individuals, employers, policymakers and asset managers” to build retirement plans.
By Garry Boulard
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