Younger Boomers Worry More about Retirement than Older Boomers

October 19, 2010 (PLANSPONSOR.com) - Younger boomers still have time to recover from the 2008 economic downturn, but worry more about control and stability in retirement than older boomers, according to a survey of Americans ages 44-75 by Allianz Life Insurance Company of North America.

While a majority (54%) of the younger group (44-49 year olds) reported feeling “totally unprepared” for retirement, they also expressed a greater need than their older counterparts to take more control of their financial future (47% vs. 35%), attain more certainty and financial security (41% vs. 30%), and reduce their financial vulnerability (26% vs. 22%). According to a press release, 84% of younger boomers agreed that the safety of their money mattered more to them now than it had a few years ago.  

Younger boomers are also more likely to be receptive to working with a financial professional. Though only 19% of this group reported working with a financial planner, 47% are receptive to working with one in the future versus 29% of all respondents. Ninety-five percent of younger boomers said it is “important” or “extremely important” that their financial professional help protect a portion of their nest egg. A similar number (87%) want their financial professional to help them make sure they have adequate guaranteed income in retirement, with 51% saying they want help planning for a “stable and secure retirement.”   

Income products with guarantees such as annuities received favorable reviews from younger boomers, the press release said. Of those who own an annuity, 80% say they are happy with their purchase. The younger boomers that own annuities ranked them highest in satisfaction (83%) among all financial instruments, beating out mutual funds at 66%, stocks at 63%, U.S. Savings Bonds at 51%, and CDs at 43%.

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