Study Shows Boomers Are Unprepared For Secure Retirement

A recent survey released by the American Academy of Actuaries and the Society of Actuaries shows that many Americans are unprepared for a secure retirement. "This survey verifies that most people do not understand many of the issues they will face when they retire," said John Parks, vice president for pension issues of the American Academy of Actuaries.

Survey results show that:

  • Two-thirds of retired women and slightly more than half of retired men underestimate life expectancy. Of those who are nearing retirement, 54% of women and 46% of men underestimate life expectancy.
  • More than half of those who have yet to retire are "very" or "somewhat" concerned about not having enough money in retirement or not being able to afford good health care.
  • Only one-third of those not yet retired have given thought to a potential need for long-term care or an extended stay in a nursing home.
  • While 63% of retirees and 60% of those not yet retired are pessimistic about the future of economic growth in the country, only 25% of retirees continue to attempt to increase their retirement savings each year.

The actuarial groups make recommendations to policymakers to educate those citizens who are facing retirement as to the risks facing older people, the costs of health care once one is no longer employed, and options for investment. The groups also recommend that Congress consider legislation that will encourage employers to provide defined benefit plans.

Six hundred Americans age 45 and older were interviewed for this survey. You can read the entire survey.

You may like these other stories...

IRS must take oath on Lerner emails: judgeMackenzie Weinger of Politico reported on Thursday that a federal judge ordered the IRS to explain under oath how it lost emails connected to Lois Lerner, the ex-IRS official at the...
Credit Suisse says pension assets at risk unless court delays sentencingJohn Letzing of the Wall Street Journal reported on Wednesday that Credit Suisse Group AG says its management of billions of dollars in assets for...
The prospect of International Financial Reporting Standards (IFRS) being fully adopted in the United States in the near future are growing less likely, as the Financial Accounting Standards Board (FASB) and the International...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.