Baby boomers think they’ll retire later, but life will be good once they do
- According to a investigation by Charles Schwab.
- Baby boomers aged 55 to 75 who have not yet retired expect to work until a later age than baby boomers already retired, expecting to retire at 66 years instead of 59.
- 84% of baby boomers expect their retirement to be better than that of their parents, and 80% expect their retirement to be better than that of their millennials.
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The current generation of baby boomers feel quite confident about their retirement, whether they are retired or plans to retire soon.
In a survey of more than 2,000 baby boomers between the ages of 55 and 75, a brokerage firm Charles Schwab found that baby boomers feel optimistic about what they have saved and how they will spend their time in retirement.
On average, respondents had Pension saving of $920,400. But that number may be higher than the general population, because the retirees surveyed had at least $100,000 in retirement savings, which may not be true for the general population. Among the group surveyed, 82% were certain that their retirement savings were enough to do everything they hope to do in retirement.
Baby boomers are working longer
The average baby boomer who has already retirement did so some time ago, quitting work at age 59. But many are still working and don’t expect to retire until later.
According to the survey, baby boomers who have not yet retired will actually be working a little longer than they expected. Most of those who have not yet retired expect to retire at age 66. And, among those who have not yet retired, 33% expect to work part-time in retirement.
Additionally, baby boomers who are still working are less likely to feel the negative financial effects of the COVID-19 pandemic. Among those who are still working, only 25% say they have been impacted, while 45% of those who have retired in the last five years and 38% of those who have been retired for more than five years felt affected .
Baby boomers are optimistic about their retirement plans
No matter when they retire, baby boomers feel good about saving and planning.
Overall, 84% of baby boomers say their retirement life is or will be better than that of their parents. Today’s retirees are living longer than any generation in the past — the average 65-year-old now lives to be over 84, while the average 65-year-old in 1980 lived three years younger, according to CDC data.
However, they are not so sure about their millennials. About 80% of baby boomers expect their retirement to be better than that of their children. And overall, that might be true – while millennials started saving earlier than other generations, they still don’t have as much wealth as other generations at the same age. Reporting by Hillary Hoffower of Business Insider. And millennials may not get the same windfall as their parents either – 65% of baby boomers said they’d rather spend their money than leave an inheritance for their kids.
Correction: This article previously stated that Baby Boomers expect to retire six years later than expected. The correct figure is seven years.