Table of Contents
Executive Summary
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- The issues
- Many haven’t saved enough and they know it
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- Figure 1: Concerns about retirement life, by amount of retirement savings, August 2015
- Boomers are not loyal to their financial institution
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- Figure 2: Purchased multiple products from primary financial institution, by generation, January 2015
- The opportunities
- Boomers can help advisers grow their business
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- Figure 3: Use of financial advisers, by amount of retirement savings, August 2015
- Boomers trust credit unions more than banks
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- Figure 4: Boomers’ level of trust in financial services institutions, January 2015
- Most Boomers don’t have enough life insurance
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- Figure 5: Life insurance needs, by age, August 2015
- What it means
The Market – What You Need to Know
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- Boomers are still relevant
- Boomers are not very diverse
- Low interest rates have hurt
- Longer life expectancies
Market Size
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- Boomers are still one-quarter of US population
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- Figure 6: US population, by generation, 2010-20
Market Breakdown
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- The racial diversity of Boomers
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- Figure 7: Distribution of generations by race and Hispanic origin, 2015
- More female Boomers than male
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- Figure 8: US population, generations by gender, 2015
Market Factors
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- Impact of low interest rate environment
- Boomers’ investments in equities
- Life expectancies are increasing
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- Figure 9: Life expectancy in US, 1980-2012
Key Players – What You Need to Know
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- Aging in place – A new trend
- Boomers are starting businesses
- Single Baby Boomers are struggling
- Workplace flexibility helps Boomers continue to work
What’s In?
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- Boomers want to age in place
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- Figure 10: Plans to move in retirement, by generation, August 2015
- Boomers are well-positioned to start businesses
What’s Struggling?
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- The effect of Social Security payments on Boomers
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- Figure 11: Finances in retirement, by gender and age and Hispanic origin, August 2015
- More single Baby Boomers
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- Figure 12: Retirement savings, by marital status, August 2015
- Many Boomers are not taking steps to improve their retirement prospects
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- Figure 13: Attitudes toward retirement, by generation, August 2015
- Lack of planning leads to miscalculations
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- Figure 14: Baby boomers’ steps taken toward retirement planning, January 2015
What’s Next?
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- Flexible work schedules are helping Boomers continue working
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- Figure 15: Desire to work after retirement, by age, gender and household income, August 2015
- Growth of the sharing economy
- Boomers are selling – And starting – Small businesses
- Boomers’ effect on the housing market
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- Figure 16: Importance of owning a home, by generation, May 2015
The Consumer – What You Need to Know
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- Most Boomers have never retired
- Most haven’t waited for full Social Security benefits
- Money and health – Two main concerns
- Most do have retirement savings
- Advisers can help Boomers realize plans
- Boomers aren’t comfortable with their saving, but are not getting help
Retirement Status
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- Most Boomers have never retired
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- Figure 17: Retirement status, by gender, August 2015
- The role of age and income in decision to retire
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- Figure 18: Retirement status, by age and household income, August 2015
- The impact of education on retirement
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- Figure 19: Retirement status, by level of education, August 2015
- Health considerations are a major reason for young Boomer retirement
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- Figure 20: Reasons for retiring, by gender and age, August 2015
At What Age Do Boomers Retire?
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- Maximum Social Security benefits not a driving retirement force
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- Figure 21: Age at retirement, by gender and age, August 2015
- Most won’t retire until after age 65
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- Figure 22: AARP online retirement planning ad, 2015
- Impact of marital status
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- Figure 23: Age plan to retire, by marital status, August 2015
- The role of income in determining retirement age
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- Figure 24: Age plan to retire, by household income, August 2015
Concerns about Retirement Life
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- Most are worried about money
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- Figure 25: Concerns about retirement life, by age, August 2015
- Priorities change with savings
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- Figure 26: Concerns about retirement, by retirement savings, August 2015
Type of Retirement Account(s) Owned
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- Most Boomers have a retirement account
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- Figure 27: Type of retirement account(s) owned, by generation, August 2015
- Women are less likely to have corporate-sponsored plans
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- Figure 28: Type of retirement account, by gender, August 2015
- Minority Boomers have fewer retirement accounts
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- Figure 29: Type of retirement account, by race, Hispanic origin, August 2015
Amount of Retirement Savings
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- Many late Boomers may be in trouble
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- Figure 30: Amount in retirement savings, by generation, August 2015
- Women Boomers lag men
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- Figure 31: Amount in retirement savings, by gender and age, and generation, August 2015
- Single Boomers are in trouble
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- Figure 32: Amount in retirement savings, by marital status, August 2015
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- Figure 33: Wells Fargo Retirement Resources email, 2015
Plans for Retirement
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- Most looking forward to traveling
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- Figure 34: Plans for retirement, by generation, August 2015
- Family is important to Hispanics
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- Figure 35: Plans for retirement, by Hispanic origin, August 2015
- Many want to stay active
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- Figure 36: Plans for retirement, by generation, household income, August 2015
Managing Money
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- Most don’t know enough
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- Figure 37: Money management activities, by gender and age, August 2015
- Whites and married couples are in better shape
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- Figure 38: Money management activities, by race and marital status, August 2015
- Advisers not used by many
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- Figure 39: Money management activities, by amount of retirement savings, August 2015
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- Figure 40: AARP direct mail and online ads, 2015
- Source of retirement income
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- Figure 41: Source of retirement income, by gender, generation, August 2015
Factors Affecting Retirement Income
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- What Boomers are counting on for income
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- Figure 42: Factors affecting retirement income, by gender, generations, August 2015
- Race and income have an effect
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- Figure 43: Factors affecting retirement income, Hispanic origin, household income, August 2015
Attitudes toward Retirement
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- Lack of excitement about retirement due to lack of comfort about money
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- Figure 44: Attitudes toward retirement, by gender, generation, August 2015
- Life in retirement
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- Figure 45: Retirement assumptions, by gender, generations, August 2015
- Race and income affect retirement life
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- Figure 46: Retirement assumptions, by race, household income, August 2015
- Retirement readiness
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- Figure 47: Retirement readiness, by gender, generation, August 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
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