Journalist Karen Demasters of The Financial Advisor dug into the 18th annual Transamerica Retirement Survey of Workers. The annual survey conducted by Transamerica Center for Retirement Studies finds that workers across generations share a compelling vision of retirement, yet many still have major fears and concerns. Fifty-seven percent of Generation X and 55 percent of Baby Boomers cite outliving their savings and investments as one of their greatest retirement fears. Forty-seven percent of Millennials fear that they will be unable to meet the basic financial needs of their family when they retire. Seventy-six percent of all workers are concerned that Social Security will not be there for them when they are ready to retire.
Workers’ confidence in their ability to retire made a comeback after the Great Recession, but the confidence level stalled three years ago and has made little progress since then, according to Transamerica. In 2017, 62 percent of workers are confident they will be able to fully retire with a comfortable lifestyle, including 18 percent who are very confident and 44 percent who are somewhat confident.
Baby boomers have been the trailblazers in the new retirement climate, in which defined contribution plans have replaced defined benefit plans. Two-thirds plan to or are already working past age 65 or do not plan to retire, most for financial and healthy aging-related reasons.
The research exposes the “head in the sand” mentality many boomers are taking to facing insecurities about retirement. Only 42 percent are keeping their skills up to date in preparation for working past 65.
Generationally the confidence fluctuates widely, but overall their is some insecurity that retirement finances may not be what is hoped for.
See the original article: Three Generations Contemplate Retirement
Photo by Burnaway.