The Baby Boom that occurred from 1946 to 1964 created a lot of babies—hence the name. Now, a lifetime later, those babies have grown into workers preparing for retirement. And, for some, retirement is coming very, very soon. So, that means everyone's prepared for their best retirement, right?

Well, not according to some of these statistics. The good news is, with these statistics, you can determine how prepared you are, how you stack up against others like you, and what steps you can take to better prepare for retirement.

5 Shocking Baby Boomer Retirement Statistics

Often, statistics can offer a lot of information all at once. If you're a Baby Boomer, these statistics might reflect your current situation. If that's true, don't worry—it's never too late to begin preparations. There's still time to make the decisions that can help you retire comfortably. A financial advisor can help you save money and prepare for retirement on your terms.

 

1. 25% of the workforce are Baby Boomers

That's right, Baby Boomers make up a full quarter of the current United States workforce—that's millions of workers! This means that much of the current workforce is approaching the average retirement age. For many, that might still be several years away. This can give the illusion that there's plenty of time for retirement planning.

But those years could fly by. You still have plenty of time to open retirement accounts (or catch up the ones you currently have) as long as you start soon. The sooner you begin, the more time you can have for maximizing your retirement savings.

2. 50% of the workforce plans to retire in the next 5-10 years

Half of the workforce (including most or all Boomers) will likely retire by the end of the next decade. The good news is, businesses know this. The more people retire, the more resources and options there should be to help you prepare for retirement whenever you choose to do so.

3. 45% of Baby Boomers have no retirement savings

Staggeringly, nearly half of Baby Boomers have nothing saved for retirement. This can happen for many reasons. Perhaps they aren't aware of their options; they might plan on relying on Social Security or their personal savings or checking account; or, maybe they don't think they earn enough to save anything.

What they might not know is that there are solutions for all of these situations—and plenty of resources to help make saving easier. For example, many online banks now exist, allowing you to create and manage accounts from your computer or phone. Even a simple move, like transferring funds from a savings account to a money market account (or the similar money market deposit account) can help a saver's money grow more quickly.

4. Only 23% of boomers are subscribed to a private pension plan

Private pensions can help you save money while providing tax benefits. Your money gets invested and grows over time. This can be a useful way to prepare for retirement. Many businesses that offer a pension plan enroll their employees automatically—but not all do.

You might consider researching your company's options to see if you're able to enroll in a pension plan. If not, your employer might still offer other retirement plan options that can help you save.

5. Baby boomer retirees can expect to spend $4,300 annual for out of pocket medical expenses

Unfortunately, healthcare can become a bigger and bigger expense as the years go by—and as our needs (and the prices) go up. But knowing this is extremely useful because it helps with one of the most important parts of retirement prep: creating a budget.

Understanding annual expenses (such as rent, utilities, and groceries) can help you understand how much retirement income you might need. Medical expenses should absolutely factor into that budget. While the exact amount needed for healthcare differs from one retiree to the next, knowing the average can help give you a starting place when figuring out what your yearly cost might be.

Looking for Retirement Solutions that Meet Your Needs?
Meet Our Contributors
Colby Headshot

Colby McFadden

Founder, Quiver Financial

Justin's headshot

Justin Singletary

Director of Retirement Services,
Quiver Financial

Patrick's headshot

Patrick Morehead

Director of Alternative Investments,
Quiver Financial

quiver-white

Advisory services offered through Quiver Financial Holdings, LLC.

Registered with the state of CA | Insurance License # 0B75303

501 N El Camino Real Ste 200 San Clemente CA 92672

949-492-6900 | quiverfinancial.com

Leave a Reply