Retirement Savings Statistics Gathered by Fidelity 2006
At a time when nearly 8,000 Baby Boomers are turning retirement age each day, it does not appear that most Baby Boomers (Born between 1946-1964) are ready to retire. Fidelity’s research reports the following retirement savings statistics:
- Boomers have $35,000 in median total household personal retirement savings.
- Boomers typically save $2,750 annually for retirement.
- Boomers are on track to replace 59% of their pre-retirement income.
Boomers who save in a 401(k) have an average 401(k) account balance of $80,000. - 57% of Boomers expect to receive a pension (either own or spouse).
- 22% of Boomers will rely on the sale of their primary home for income in retirement (that was in 2006—these plans are no longer realistic in 2008).
- 69% of Boomers will rely on working at least part-time for income in retirement
- Of the 69% of Boomers expecting to work in retirement:
– 68% will do so to cover basic expenses.
– 52% will do so to receive employer health benefits.
– 23% will do so because they want to stay busy
Based on these retirement savings statistics, the bottom line is this: boomers financial planning for retirement has been inadequate. It’s clear that most will need to work during their “retirement years”, will need to annuitize their assets (consume their nest egg for income—see the annuity calculator) and live more conservatively (perhaps in lower costs areas or with more stringent lifestyles) than desired.
Why has this happened and is there a way out? Boomers simply like to spend on goods that make them happy today rather thn for their edler years as this retirement savings statistic indicates:
Retirement Savings vs Purchases of New BMWs
Listen to this post
March 6th, 2009 at 10:39 am
The commonly accepted figure is 77 million baby boomers in the 20 years between the mid-’40s and mid-’60s.
That’s an average of fewer than 4 million per year, or about 1 percent of the US population.
It doesn’t sound like the omigod, the sky-is-falling financial catastrophe everybody dreads. How many people retired in 2008? Is there a huge difference between that number and 4 million?
March 9th, 2009 at 8:03 pm
I think with what has happened in the past 6 months, there will be a higher percentage of baby boomers staying in their jobs if they can help it. I don’t think it is a matter of just wanting a little extra money anymore.
David Stillwagons last blog post..unemployed and over fifty news, March 8
May 17th, 2009 at 6:05 pm
I am in the generation just after the baby boomers. Some in my generation are doing very well with retirement planing but the generation after mine seems like they are the worse so far. Yes some baby boomers spend and never save but the generation x seems to spend even more than they ever will make.
I guess i like the idea i will have more money every year not less and can do with out some toys ever year.
Best etf funds lists last blog post..Bond etf.
July 2nd, 2009 at 1:25 pm
Funny how boomers are first one who made so much money and never saved that much to retire. They lived in the moment and will not do well when they retire. Not all people lived this way but alot of people did and now they are worried.
July 7th, 2009 at 4:57 am
Fidelity Investments came out with its 2008 retirement trends data , and the news isn’t as bad as it could have been. Sure, average retirement account balances fell a whopping 27% to $50,200 last year… Anyways investors have become alert in investing their money.
July 22nd, 2009 at 2:43 pm
I would like to see how they are doing after the recession. I know more people are saving and paying down debt but i doubt they are putting much away to retire on. I thinbk they should be putting more money away now and pay debt down at same time.
October 2nd, 2009 at 10:58 am
That is an interesting statistic but it is not surprising. I wonder why that is? Why do baby boomers have saved less for their retirement. I wonder what they spent all the money they made on…