ST. LOUIS–A new survey that reveals how prepared Baby Boomers are for retirement won’t come as a big surprise to many in credit unions: they are not.
The new survey of 1,000 Baby Boomers on the cusp of retirement conducted by Clever Real Estate using Amazon’s Mechanical Turk platform found most respondents believe they’ll be able to retire by age 68, but they may need to adjust their expectations.
Cleaver Real Estate noted financial experts recommended individuals have roughly eight times their salary stashed away for retirement by age 60, or approximately $456,000, based on Boomer respondents’ average annual income of $57,000 a year.
“Unfortunately, the average Boomer has approximately $136,779 in retirement savings — about 30% of the recommended amount,” Clever Real Estate reported, adding, “We found that retirement savings aren’t the only financial hurdles Baby Boomers are facing — they struggle with emergency savings and paying off debt as well.”
Among the other key findings in the survey:
- 31% of Baby Boomers do not have an emergency fund.
- 40% of Baby Boomers are still paying off credit card debt.
- Strikingly, if Baby Boomers were given $10,000, 36% would pay off debt and 53% would use that money to save for an emergency fund.
- 59% of Baby Boomers believe Social Security will be a major source of income in retirement; however, retirees will likely only be collecting 75% of their Social Security benefits by 2035, according to a 2019 report from the Trump administration, Clever Real Estate said
- When investing, Baby Boomers are the most risk averse, while Generation Z is the most risk tolerant
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