A majority of baby boomers and Generation X workers and millennials do not know how much they need to save for retirement, according to a survey by the Limra Secure Retirement Institute released Thursday.
Sixty percent of boomers (born between 1946 and 1964) and Gen Xers (born between the mid-1960s and mid-1980s) and 70 percent of millennials (born between the mid-1980s and mid-2000s) are in the dark about the amount of savings they will need, Limra says.
“Not surprisingly, our study found that the majority of Americans -- no matter their generation -- are not confident that they will be able to achieve the retirement lifestyle they desire,” says Cecilia Shiner, associate research director of the Limra Secure Retirement Institute. “If consumers aren’t confident that they are doing the basics correctly, like saving enough for retirement, it is unlikely that they will be confident of their retirement prospects.”
More than half of the boomers surveyed have less than $100,000 in retirement savings, and more than one-third have less than $25,000, the survey of 2,000 working Americans shows.
“Across all generations, only about one-quarter of workers are using a paid financial professional,” notes Shiner. “Prior institute research has found that consumers who use a financial professional to plan for retirement are more likely to feel confident in their retirement security. Only 30 percent of boomers have a retirement plan -- and only a third of them say it is a formal one. Working with a financial professional to develop a retirement plan would likely improve preparedness and confidence for retirement.”