Boomers have concerns about retirement

A survey released by the non-profit Transamerica Center for Retirement Studies reveals that baby boomers hold certain concerns about the retirement prospects of future generations. However, it's important to note that this outlook is tempered by a sense of hope and positivity among other age groups.

Interestingly, the survey found that the pessimism expressed by baby boomers is not shared to the same extent by younger workers. Generation Z and millennials, in particular, displayed a more optimistic perspective, with only 28% and 33% respectively believing that future retirees will be worse off. Generation X also showed a more balanced view, with 51% holding this concern.

It's understandable that baby boomers may feel the most uncertain about retirement, given their plans to work longer than any other generation. According to the survey, nearly half of baby-boomer workers expect to continue working past the age of 70 or have already made that decision. Their motivations for doing so are multifaceted, with financial reasons being the most prevalent (cited by 83% of respondents). Other factors include desires for healthy aging (77%), the need for income (64%), and a desire to stay active (56%). A small portion, around 20%, mentioned anxiety related to financial market volatility and investment performance.

When it comes to retirement fears, baby boomers highlighted concerns about outliving their savings and investments (49%), declining health that requires long-term care (43%), and the sustainability of Social Security (40%). These worries reflect genuine apprehensions about the future, but it's worth noting that individuals from different generations may have their own unique set of concerns.

Despite these challenges, it's heartening to see that baby boomers still maintain a surprisingly high level of confidence in their ability to retire comfortably. In fact, 70% of respondents expressed feeling very or somewhat confident in their retirement readiness. This positive outlook demonstrates their resilience and determination to secure a fulfilling retirement.

While it's true that baby boomers face potential setbacks such as employment challenges, market volatility, and rising inflation, it's important to remember that individuals in this generation have made some preparations. The survey revealed that they have a median of $289,000 saved across all household retirement accounts, as well as a median emergency savings of $25,000. Additionally, although only 34% stated that they have a backup plan for income if forced into retirement earlier than expected, it's encouraging to see that some level of preparedness exists.

In conclusion, while concerns persist among baby boomers regarding retirement prospects for future generations, it is heartening to see a more positive outlook from younger age groups. The determination and resilience demonstrated by baby boomers in facing their retirement challenges, along with their commendable confidence in their ability to retire comfortably, give hope for a brighter future.

Transamerica's 23rd annual retirement survey of workers was conducted between Nov. 8 and Dec. 13 among a nationally representative sample of 5,725 workers in a for-profit company employing one or more employees.