IRI research shows 76.2% of Baby Boomers and 78.2% of Generation Xers stated they were somewhat to extremely confident they will have enough money to live comfortably throughout their retirement years. However, only 51.4% of Baby Boomers and 40.7% of Generation Xers have calculated how much they will need in retirement savings. Roughly one-fifth (21.6%) of Baby Boomers and 40.8% of Generation Xers have less than $50,000 saved for retirement; and 21.7% of Baby Boomers and 27.8% of Generation Xers reported having no savings for retirement.
In addition, many members of both generations (40.8% of Baby Boomers and 45.1% of Generation Xers) report they are “not very” or “not at all” knowledgeable about investing in securities.
The research found that working with a financial adviser increases retirement confidence. Among Baby Boomers who consulted with a financial adviser, 42.8% are extremely or very confident compared with 32.3% of those who did not. Among individuals in Generation X who consulted a financial adviser, 47.6% are extremely or very confident compared with 28.9% of those who did not. In addition, those who have calculated their retirement savings needs have higher levels of confidence in meeting their retirement savings goals. Among Baby Boomers who completed the calculation, 44.2% are extremely or very confident compared with 29.0% of those who did not. Among individuals in Generation X who completed the calculation, 46.9% are extremely or very confident compared with 27.9% among those who did not.