The Insured Retirement Institute released new research indicating that during the past year, nearly 30% of baby boomers stopped contributing to a retirement plan, and 16% prematurely withdrew funds from one.
The recession and slow recovery are pointed to as the primary barrier preventing baby boomers from adequately saving for retirement.
Low and inadequate savings are currently pervasive among boomers, with a startling 22% having no retirement savings. Among boomers who reported a retirement savings level, nearly 40% have saved less than $100,000.
“At a time when a quarter of boomers reported difficulty paying the rent or the mortgage, it is easy to understand why saving for retirement has taken a back seat,” IRI President and CEO Cathy Weatherford says. “But as the economy recovers, it will be imperative that boomers get back on the path toward a financially secure retirement. Working with a financial advisor could help, as 43% of boomers who have consulted a financial advisor have the highest levels of confidence in achieving financial security throughout their retirement years.”
ING also recently surveyed 4,050 adults between the ages of 25 and 69 who are full-time employees with an annual household income of $40,000 or greater. 53% of the respondents have only just begun saving for retirement, while 12% have not started saving at all.
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