CHICAGO, Aug. 3, 2017 /PRNewswire/ -- Our nation's
estimated 76 million baby boomers are still coping with the
long-term effects of the 2007 financial crisis as they enter or
prepare for retirement.
As the financial crisis cut into their net worth and lowered the
value of their homes, boomers' confidence in achieving a personally
satisfying retirement dropped significantly, according to a recent
study commissioned by the Bankers Life Center for a Secure
Retirement (CSR),"10 Years After the Crisis: Middle-Income
Boomers Rebounding But Not
Recovered." Today, less than four in 10 (37%)
boomers are certain they will have a personally satisfying
retirement.
Before the crash, middle-income boomers—those defined with an
annual household income between $30,000 and
$100,000 and less than $1
million in investable assets—were already contending with a
"new retirement" stemming from changes to their retirement
programs, as employers shifted away from defined benefit plans such
as pensions to defined contribution plans, primarily 401(k)
plans.
The study examines how a lack of confidence has changed boomers'
attitudes and behaviors about investing and saving, and how they
are adapting their expectations to meet the realities of this new
retirement. In effect, they are redefining the new retirement.
The study found 28 percent are making more conservative
investments, and 26 percent report they no longer invest as a
result of weathering the crisis. Further compounding their cautious
behaviors, the study found two-thirds are worried about another
financial crisis in their lifetime.
Additionally, the boomers surveyed say they have lowered their
overall expectations for financial independence in retirement,
compared to before the crisis. The study reports that only:
- 16% expect to have savings
- 34% expect to retire debt free
- 19% expect to pay off their mortgage
- 16% expect to pass an inheritance to heirs
Meanwhile, the proportion of boomers who expect to work full or
part-time in retirement has increased from just over a third to
nearly one-half since before the crisis.
"Though they've weathered the storm, for many boomers, the new
retirement means working longer," said Scott Goldberg, president of Bankers Life. "We
see this trend as an opportunity for individuals to enjoy both the
financial and emotional benefits of staying employed, even
part-time. While the definition of retirement continues to evolve,
prudent planning and goal setting can help boomers regain
confidence for a satisfying retirement."
Methodology
"10 Years After the Crisis:
Middle-Income Boomers Rebounding But Not Recovered" is part of
a series of studies commissioned by the Bankers Life Center for a
Secure Retirement. It was conducted in October 2016 by independent research firm The
Blackstone Group.
The findings were from one Internet-based survey:
A nationwide sample of 1,000 middle-income Boomers. Quotas were
established based on the U.S. Census Current Population Survey data
for age, gender and income to obtain a nationally representative
sample. The margin of error is +/- 3.1 percentage points at the 95%
confidence level.
All respondents were aged 52 to 70 and had an annual household
income of between $30,000 and
$100,000.
About the Center for a Secure Retirement
The Center
for a Secure Retirement is the Bankers Life's research and consumer
education program. The Center's studies and consumer awareness
campaigns provide insight and practical advice to help everyday
Americans achieve financial security in retirement.
About Bankers Life
Bankers Life focuses on the
insurance needs of middle-income Americans who are near or in
retirement. The Bankers Life brand is a part of CNO Financial
Group, Inc. (NYSE: CNO), whose companies provide insurance
solutions that help protect the health and retirement needs of
working Americans and retirees. There are more than 5,000 Bankers
Life insurance agents at over 300 offices across the country. To
learn more, visit BankersLife.com.
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SOURCE Bankers Life Center for a Secure Retirement