Make the Difference for Pre-Retirees
In the annual survey conducted by the Insured Retirement Institute (IRI) that measures the retirement preparedness of Baby Boomers, key findings point to the fact that Boomer confidence in doing a good job preparing financially for retirement has declined over the last few years—from 44% in 2011 to 37% in 2013. The research shows that working with an advisor makes a significant difference in Boomer confidence regarding financial preparation for retirement:
- Confidence: 48% of Boomers who work with an advisor were extremely or very confident with their financial preparations for retirement, compared with 28% who did not work with an advisor. In addition, Boomers who work with an advisor were more engaged in their retirement plans.
- Savings: 94% of Boomers who work with an advisor have savings for retirement compared with 64% who do not work with an advisor.
- Goals: 71% of Boomers who work with an advisor have calculated a retirement savings goal compared with 34% who do not work with an advisor.
- Engagement: According to the research, the rebalancing of a retirement plan's asset allocation is a good measurement of long-term engagement with retirement plans. Boomers who work with an advisor are more likely to rebalance their portfolios: 45% of Boomers who work with an advisor rebalance their portfolio once a year compared with 24% who do not work with an advisor.
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Source: "Boomer Expectations for Retirement", Insured Retirement Institute, April 2013