As they near the end of their working years, a growing number of Baby Boomers lack confidence in their retirement savings, a new report finds.
According to a study from the Insured Retirement Institute, less than a quarter of Baby Boomers (24 percent) are confident they’ve saved enough to last through their retirement years. It’s the lowest confidence level the study, which began in 2011, has ever seen.
The negative outlook isn’t surprising given that only 55 percent of Boomers report having any savings for retirement. Among Boomers that have saved, 42 percent have put away less than $100,000, enough to generate less than $7,000 a year in retirement income.
Many Boomers say they’ll have to work longer than planned and rely more heavily on Social Security as a result. The report found that nearly 6 in 10 Boomers (59 percent) expect Social Security to be a major source of income in retirement, up from 43 percent in 2014. And in the past year alone, 30 percent of Boomers have postponed their plans for retirement.
Experts say creating a financial plan is the key to getting Baby Boomers’ retirement—and confidence—back on track. The study found that more than 8 in 10 Boomers who work with a financial professional said they are better prepared for retirement as a result. And 68 percent of Boomers who own annuities and 78 percent of Boomers who work with financial professionals have at least $100,000 saved for retirement, compared to only 58 percent of all Boomers.