New Data Shows Baby Boomers’ Low Retirement IQ
Today, the IALC released new data that shows many baby boomers struggle to answer even simple questions about retirement. For instance, 60 percent of baby boomers think the average American needs less than $1 million in retirement when, in reality, experts say health care costs alone can account for more than $250,000.
The study found that:
- 1 in 4 baby boomers have less than $5,000 saved for retirement.
- More than 50 percent of baby boomers have no clue what the average monthly Social Security payment is. In fact, many overestimate the average payment by $500.
- Nearly half of baby boomers don’t know there are financial products that can deliver lifetime income through retirement. Products like Fixed Indexed Annuities (FIAs) can help provide guaranteed* lifetime income, even after they stop working.
- 40 percent of baby boomers would prioritize things like traveling and buying a new car over putting their money toward retirement.
Baby boomers—the age group closest to retirement—have a significant gap in retirement knowledge, which has resulted in little action toward planning for retirement.
half of baby boomers don’t know there are ways to get paychecks for life in retirement. Want to learn more about baby boomers’ lack of retirement knowledge and action? Click here to learn more.
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