Boomers still not ready for retirement

Over 50 per cent of baby boomers believe they are only “somewhat ready” in terms of their financial preparations for retirement, with another 20 per cent saying they were either “very unprepared” or “somewhat unprepared” for impending retirement, according to new research from Assirt, commissioned by Advance.

The survey also found that less than one-third felt they were “very ready” to finish work and live on their retirement savings, despite three-quarters of baby boomers now understanding the importance of having adequate funds for retirement.

The research found little disparity according to gender in terms of amounts invested and financial preparedness, with age the only significant differentiator — 59 per cent of the 60-65 age group had more than $200,000 invested, compared to only 34 per cent of 45-54 year olds.

Advance managing director Kate Mulligan said: “One third of boomer investors do not believe that their savings will provide them with the income they require during retirement and expect their standard of living to decline accordingly.

“In fact, only 56 per cent of those surveyed expect their standard of living to remain at the same level after retirement.”

According to Assirt: “Looming retirement calls to account the key issue of money, family, social and personal roles, security, sometimes even self-perception and fear with respect to how that person envisages life after work.

“One’s standard of living is a fundamental question that most in the younger category of boomer investors have not yet embraced with their head, preferring to allow the heart to rule.”