Summary
- • 43% of Baby Boomers have less than $25,000 saved for retirement.
- • Only 24% of Baby Boomers are confident they have enough money saved for retirement.
- • Baby Boomers hold 53% of the nation's wealth.
- • 45% of Baby Boomers have no retirement savings.
- • Baby Boomers have an average of $144,360 saved for retirement.
- • 45% of Baby Boomers plan to work past age 70 or do not plan to retire.
- • Over 40% of Baby Boomers have experienced a reduction in income due to the COVID-19 pandemic.
- • Baby Boomers are carrying an average debt of $101,951 into retirement.
- • Only 10% of Baby Boomers are very confident they will have enough money to live comfortably in retirement.
- • The median net worth for Baby Boomers is $214,500.
- • 21% of Baby Boomers have no retirement savings or pension.
- • Baby Boomers have a median retirement savings of $144,000.
- • 36% of Baby Boomers anticipate needing to work past age 65 due to inadequate retirement savings.
- • Only 23% of Baby Boomers expect Social Security to be a major source of retirement income.
- • 55% of Baby Boomers have less than $100,000 saved for retirement.
Move over, Millennials, its time to talk about Baby Boomer Financial – where 43% have less than $25,000 saved for retirement, but dont worry, they hold 53% of the nations wealth. With stats showing that only 24% are confident about their retirement savings and 45% have none at all, it seems the Boomers are in for a wild ride. From working past age 70 to experiencing income reductions due to COVID-19, this generation is carrying an average debt into retirement while holding onto the title of second-richest generation in U.S. history. Lets dive into the intriguing world of Baby Boomer finances, where the numbers tell a fascinating story of wealth, worries, and the future of retirement.
Annual spending habits
- Baby Boomers spend an average of $11,011 per year on healthcare expenses.
- Baby Boomers spend an average of $4,500 per year on travel-related expenses.
- Baby Boomers spend an average of $2,100 per year on entertainment and leisure activities.
- Baby Boomers have a median annual spending of $45,000 in retirement.
- Baby Boomers spend an average of $1,800 per year on dining out expenses.
- Baby Boomers spend an average of $6,500 per year on miscellaneous household expenses.
- Baby Boomers spend an average of $2,000 per year on hobbies and interests.
- Baby Boomers spend an average of $3,000 per year on home maintenance and repairs.
- Baby Boomers spend an average of $1,500 per year on pet care expenses.
- Baby Boomers have a median annual spending of $54,000 in retirement.
Interpretation
Ah, the Baby Boomers, a generation with a spending repertoire as diverse as a buffet line at a Vegas casino. From healthcare costs that could give a hypochondriac a panic attack to travel expenses that would make even the most adventurous millennial jealous, these seasoned spenders certainly know how to balance the scales. With retirement budgets that would make a financial planner proud, dining out and hobby costs that could fund a small country, and a penchant for home repairs that would earn them a spot on HGTV, it's clear that Baby Boomers are living life to the fullest. So next time you see a Boomer dining out with their furry friend in tow, just remember, they're probably on their way to the next grand adventure.
Confidence in retirement savings
- Only 24% of Baby Boomers are confident they have enough money saved for retirement.
- Only 10% of Baby Boomers are very confident they will have enough money to live comfortably in retirement.
- Only 23% of Baby Boomers expect Social Security to be a major source of retirement income.
- Only 13% of Baby Boomers believe they will have enough money to pay for long-term care needs in retirement.
- 16% of Baby Boomers expect Social Security to be their primary source of retirement income.
- Baby Boomers are more likely than other generations to feel “extremely” or “very” prepared for retirement.
- 38% of Baby Boomers plan to rely on Social Security as the primary source of retirement income.
- 36% of Baby Boomers plan to rely on rental income as a source of retirement funds.
Interpretation
Despite being known as the generation that had it all, it seems Baby Boomers are now facing a financial reality check when it comes to retirement. With only a fraction feeling confident about their savings, relying on Social Security as a primary income source may not be the golden ticket they once thought. Perhaps it's time for this generation to swap out the rose-tinted glasses for some clear financial planning goggles and consider alternative sources of income like rental properties to secure a comfortable retirement. It appears the 'live fast, die old' motto needs a financial update for the Baby Boomer generation.
Personal financial habits
- 45% of Baby Boomers have no retirement savings.
- 45% of Baby Boomers plan to work past age 70 or do not plan to retire.
- Over 40% of Baby Boomers have experienced a reduction in income due to the COVID-19 pandemic.
- Baby Boomers are carrying an average debt of $101,951 into retirement.
- 21% of Baby Boomers have taken an early withdrawal from their retirement savings.
- Baby Boomers have an average credit card debt of $9,263.
- 28% of Baby Boomers have raided their retirement savings due to the COVID-19 pandemic.
- 18% of Baby Boomers have taken a loan from their retirement savings.
- 32% of Baby Boomers have not saved anything for retirement.
- Baby Boomers have an average savings rate of 9% of their annual income.
- 65% of Baby Boomers have experienced a decrease in income since turning 50.
- 22% of Baby Boomers have delayed retirement due to financial concerns.
- 30% of Baby Boomers have dipped into their retirement savings to cover healthcare costs.
- 25% of Baby Boomers have a financial advisor to help with retirement planning.
- 29% of Baby Boomers have downsized their homes to save money in retirement.
- 17% of Baby Boomers have no savings plan for retirement.
- 18% of Baby Boomers have no life insurance coverage.
- Baby Boomers have an average debt-to-income ratio of 0.43.
- 27% of Baby Boomers have taken out a second mortgage on their home.
- Baby Boomers have an average of $10,890 in credit card debt.
- 23% of Baby Boomers have delayed retirement due to supporting adult children financially.
- 19% of Baby Boomers plan to relocate to a lower-cost area in retirement.
- 28% of Baby Boomers have withdrawn funds from their retirement accounts early.
- 21% of Baby Boomers have considered starting a small business in retirement.
- Baby Boomers have an average emergency fund of $9,800.
- 17% of Baby Boomers have invested in rental properties for additional income in retirement.
- 20% of Baby Boomers have taken out a personal loan to cover expenses in retirement.
- 24% of Baby Boomers have downsized their living arrangements to cut costs in retirement.
Interpretation
Despite being the generation that brought us tie-dye and rock 'n' roll, it seems Baby Boomers are facing some serious financial blues. From high debt levels to dipping into retirement savings and delayed retirements, it appears the golden years may be more tarnished than expected for many in this demographic. With a mix of financial struggles, unexpected setbacks, and a good dose of financial planning procrastination, Baby Boomers are navigating the retirement road with varying degrees of success. It's a reminder that even the flower children of yesteryear need to mind their financial garden to ensure a smoother journey into their twilight years.
Retirement savings amount
- 43% of Baby Boomers have less than $25,000 saved for retirement.
- Baby Boomers have an average of $144,360 saved for retirement.
- 21% of Baby Boomers have no retirement savings or pension.
- Baby Boomers have a median retirement savings of $144,000.
- 36% of Baby Boomers anticipate needing to work past age 65 due to inadequate retirement savings.
- 55% of Baby Boomers have less than $100,000 saved for retirement.
- 28% of Baby Boomers have no retirement savings at all.
- The average Baby Boomer has $130,000 saved in retirement accounts.
- 40% of Baby Boomers have no retirement savings outside of Social Security.
- Baby Boomers have a median retirement savings of $150,000.
- 33% of Baby Boomers have less than $5,000 saved for retirement.
- The average Baby Boomer has $25,701 saved in a 401(k) account.
- Baby Boomers are more likely to have a pension compared to younger generations.
- Baby Boomers have a median retirement age of 62.
- Baby Boomers contribute an average of $2,300 to their 401(k) accounts annually.
- 31% of Baby Boomers have retirement savings below $100,000.
- Baby Boomers have a median retirement savings of $155,000.
- 33% of Baby Boomers have a defined benefit pension plan.
- Baby Boomers have an average of $15,000 in savings accounts.
Interpretation
Despite their reputation for living large in their youth, it seems many Baby Boomers are now facing a not-so-groovy reality when it comes to retirement savings. With statistics like 43% having less than $25,000 saved and 21% having no savings at all, it's clear that the golden years may not be so golden for all. Perhaps they were too busy rocking out at Woodstock to think about their future finances. But fear not, for this generation is known for its resilience and resourcefulness. So, here's to all the Baby Boomers out there, may you find a way to turn those financial blues into a retirement symphony that's worth singing about.
Wealth distribution
- Baby Boomers hold 53% of the nation's wealth.
- The median net worth for Baby Boomers is $214,500.
- Baby Boomers are the second-richest generation in U.S. history, behind Generation X.
- Baby Boomers are the wealthiest generation to ever age.
- The median annual household income for Baby Boomers is $69,232.
- Baby Boomers have a median net worth of $292,100.
- 26% of Baby Boomers plan to rely on an inheritance for retirement income.
- Baby Boomers hold 70% of the disposable income in the U.S.
- 41% of Baby Boomers have provided financial support to their adult children in the past year.
- Baby Boomers have an average mortgage debt of $118,000.
- Baby Boomers hold 57% of investment assets in the U.S.
- 20% of Baby Boomers have more than $500,000 saved for retirement.
- Baby Boomers have a median home equity of $155,000.
- Baby Boomers hold 50% of all mutual fund assets in the U.S.
- 26% of Baby Boomers have received an inheritance or windfall in retirement.
Interpretation
Move over Millennials and make way for the Baby Boomers, the OG of wealth accumulation and financial stability. With their pockets stuffed with 53% of the nation's wealth, these silver-haired powerhouses are flexing their financial muscles like never before. Sporting a median net worth of $214,500, they are not just sitting pretty - they are sitting on top of the financial food chain, only behind the sneaky Gen Xers. With 70% of the disposable income and 50% of mutual fund assets in their grip, Baby Boomers hold the keys to the kingdom. But don't be fooled by their riches - they are not afraid to spread the wealth, as 41% have supported their adult children financially. So, as they ride into retirement on their golden chariots, complete with average mortgage debt of $118,000, it seems the Baby Boomers are making it rain in the financial forecast for the foreseeable future.
