Skip to main content
Created: September 27, 2018
Modified: July 5, 2023

Are You A Baby Boomer? What Is Your Retirement Readiness?

CLICK TO READ THIS ARTICLE ON FORBES.COM

The generation referred to as Baby Boomers includes individuals born between 1946 and 1964 and is often a difficult group to analyze and target. Baby Boomers run the gamut of different life stages – from single to married with young children to empty nesters and everywhere in between. According to the Insured Retirement Institute (IRI), only 25% of this age cohort are confident their savings will last throughout retirement. Creating a retirement income plan, deferring your retirement by even one year, analyzing your guaranteed incomes, understanding the makeup of your accounts and the differences in taxation laws are some of the ways to help improve your financial security as you enter retirement. Are you ready for retirement? How do you compare to other Boomers?

1. 4 in 10 Boomers plan to take money out of their 401(k) accounts before retirement.

This is a big NO in the world of retirement financial planning 101. Your 401(k) is principle protected and is designed to pay your income for the rest of your life. Withdrawing sooner is a huge mistake. While 4 in 10 plan to withdraw from this type of account, only 22 percent consider their 401(k) to be a major source of their retirement income.

2. 7 in 10 Boomers like the idea of a guaranteed pension style income.

Pensions are not as frequently found as they were in the past. Boomers value that certainty and security of a pension style income as they get close to retirement. Yet, only 14 percent plan to purchase an annuity with a portion of their 401(k) or IRA.

3. More than half of all Boomers are relying on Social Security as a big source of their income.

Statistically, Boomers don’t have enough savings, are not managing their accounts well enough and therefore are relying heavily on Social Security. Over 76 percent of individuals say that changes in Social Security which will negatively affect their income is one of the top two concerns regarding their retirement year. The other major concern is that the unpredictability of Social Security will impact their health care expenses. And, we know from many studies and research that the increasing cost of long-term care and health care expenses will cause many families hardships unless they have planned accordingly.

4. Over 50% of individuals do not manage or review their accounts regularly.

It is very important to rebalance your investments about once a year. While 80% of Boomers check their balances quarterly, only half actually take the time to analyze their accounts and then rebalance.

If you are a Baby Boomer, most likely some of the statistics and findings resonate very closely with you. On a positive note, it is never too late to turn things around. Creating a relationship with a financial advisor or retirement planning specialist highly correlates to feeling prepared for retirement. According to the Insured Retirement Institute, close to 80 percent of Boomers who worked with a financial professional have at least $100,000 saved for retirement compared to 48 percent who have not worked with someone.

Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.

Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.

Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.

Joel Johnson, CFP®
Managing Partner at Johnson Brunetti
Joel Johnson, CFP®
Joel Johnson, the Managing Partner of Johnson Brunetti, has been in the financial services industry since 1989. As a CERTIFIED FINANCIAL PLANNER™ professional, Joel and his team have helped thousands of families develop their own individualized retirement plans based on the unique needs of those approaching the second phase of their lives. Starting from humble beginnings but developing a strong work ethic early on, Joel’s grandfather taught him by serving others first and creating value for someone else, you will never have to worry about money. These important life lessons were the driving…
Resources by Topic

Subscribe to Our YouTube Channel

Share

Related Resources

  • How to Jumpstart Your Retirement Planning

    Retirement planning can feel overwhelming, especially after decades of hard work and diligent saving. With so much to consider, how can you ensure your money lasts as long as you do? The good news…
  • Podcast Episode 408: What to Do in a Down Market

    Prefer to watch? Click here to watch and listen on YouTube. As recent market fluctuations have stirred up a lot of economic uncertainty, there’s a particular question on many investors’ minds: …
  • What Estate Planning Steps Should I Take?

    With retirement on the horizon, you may be wondering what steps you should be taking from an estate planning standpoint. At its core, there are three key estate planning considerations to keep in …
  • Case Study: What Should My Investment Portfolio Include?

    As you approach retirement, your investment strategy must shift from aggressive growth to a focus on income generation, asset preservation, and moderate growth to outpace inflation. Consider th…
  • Podcast 407: Is My Social Security Income Taxable?

    Prefer to watch? Click here to watch and listen on YouTube. A common misconception about Social Security is that whether your benefits are taxed depends on the state you live in. While state ta…
  • How Can I Protect My Retirement Savings from Market Volatility?

    We’ve been receiving a lot of questions lately about how to best protect your retirement savings against stock market volatility. It’s easy to let recent fluctuations in the market shake your conf…
  • Avoiding the Retirement Tax Trap

    Once you retire, understanding your tax implications becomes even more crucial. After all, taxes don’t disappear in retirement. In fact, as you begin withdrawing from your retirement savings, you …
  • Podcast Episode 406: How to Plan for a 30-Year Retirement

    Prefer to watch? Click here to watch and listen on YouTube. The retirement landscape has changed dramatically. Today’s retirees bear much more of the responsibility for securing their financial…
  • Podcast Episode 405: The Retirement Tax Trap

    Prefer to watch? Click here to watch and listen on YouTube. The term “tax trap” comes from the misconception that you’ll need less income in retirement, so you’ll pay lower taxes. This leads ma…
  • What Should I Watch Out for When Reviewing My Retirement Tax Return?

    Now that tax season is over and your return is filed, you may be wondering what you need to review in preparation for next year, especially if you’re approaching retirement. In this week’s Mone…
    Back to top
    Our Locations
    Johnson Brunetti
    Welcome to Our New Website!
    Everything was designed with you in mind, making our retirement planning resources more easily accessible to you.
    Check out your new resource center, where everything can be organized by article type or topic
    Are you ready to speak with a financial advisor?
    Skip to content