Survey: Boomers Unprepared for Looming Retirement Over one-third have no retirement budget
New York, NY— After a year of budget cuts to various federal government programs, and the potential for entitlement reforms on the horizon, an already weakened social safety net could become even weaker, which prompted The NHP Foundation, a not-for-profit provider of service-enriched affordable housing, to ask how financially confident are Baby Boomers as they grow nearer to retirement. This new survey of 1000 non-retired Americans aged 50+ identifies a serious disconnect between saving and planning for retirement and actually affording a desirable lifestyle. Of the estimated 78 million Baby Boomers, about 10,000 hit retirement age every day, but according to The NHP Foundation data, 73% of Baby Boomers expect to delay retirement. Compounding these findings, a full 31% stated that they have not prepared a retirement budget, while 62% of those who have budgeted stated that SSI (Social Security Income) will contribute to at least half of their monthly income.
UNFORESEEN HEALTH COSTS A FACTOR
While roughly three-quarters of Baby Boomers expect to delay retirement to continue working, an anticipated decline in health tends to cut those plans short for many. However, 65% of those surveyed stated that they have not budgeted for unforeseen health-related expenses. Of those without a retirement budget and planning on SSI for at least half of their income, 72% noted that they have not accounted for unforeseen health-related expenses. When parsing this data, tax consultant and financial advisor Paul Shapiro said, “Although this generation is statistically healthier and living longer than previously, it’s still startling to see people taking such a laissez-faire attitude to long-term health and retirement planning.”
RETIREMENT REALITY VS. “WISHFUL THINKING”
Juxtaposed to the above findings, 70% of those surveyed are at least somewhat confident that they will experience the retirement that they seek, and out of those that expect to delay retirement, 63% believe they will achieve their desired retirement.
THE NHP FOUNDATION SURVEY COMPENDIUM
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