The baby boomers, all 76 million of them, are a complex group. And as hard as we all try to make blanket statements about how they feel about this or that, it’s dangerous to paint this group with too broad a brush. We offer that disclaimer immediately before we go ahead and ascribe a whole bunch of statistics about boomers' attitudes on everything from retirement to annuities to their advisors. Bottom line: these statistics are useful for learning about the group as a whole, but may say nothing about what the people you’re talking to believe.
Boomers by the Numbers:
- 11% say they are strongly convinced they’ll be able to retire comfortably
- 55% say they are fairly certain they will retire comfortably.
- 44% have little or no faith that they’ll have enough money saved when their careers end.
Source: AP Lifegoesstrong.com poll
- Boomers ranked annuities second-highest in satisfaction among all financial instruments, beating out mutual funds at 38%, stocks at 36%, U.S. savings bonds at 35% and CDs at 25%. Gold and precious metals came in first with a satisfaction rating of 62%.
- When asked to choose the features that would be most important if they could build the ideal financial product, the most selected feature was “the ability to create a stable, predictable standard of living throughout retirement. In second and third place were the “ability to provide a guaranteed income stream for life” and “guaranteed not to lose value.”
- 54% expressed distaste for the word "annuity."
- 25% formed their opinion of annuities more than 20 years ago.
- 80% preferred a product with 4% return and a guarantee against losing value over a product with 8% return and a vulnerability to market downturns.
- 66% said trust is a major issue with financial advisors today.
- 46% said a good financial advisor is worth every penny.
- 37% said they want their financial advisor more focused on safety than growth.
Source: Allianz “Reclaiming the Future” study