Retirement planning varies among married, single boomers
By National Underwriter
By Michael K. Stanley
Less than 40 percent of boomer couples reported that they felt confident in attaining financial security in retirement.
The Insured Retirement Institute (IRI) released the finding in a factsheet that highlights the differences in retirement planning and saving behavior between couples and single boomers.
The cardinal finding in the report was that boomer couples seemed better prepared for retirement and also exhibited superior spending habits when compared to their single cohorts although boomers who reside as couples still have ample room for improvement regarding their spending habits and their subsequent preparedness for retirement.
Close to 82 percent of married boomers reported that they had “some level of retirement savings," compared to 66.6 percent of singles.
The recent economic milieu has caused many people from varying generations, relationship status and socioeconomic backgrounds to cease or lower their contribution to their retirement accounts, whether employer-sponsored or private. The IRI report found that two-thirds of boomer couples continued to contribute to their retirement account throughout the economic volatility while only 14 percent prematurely withdrew funds.
The report also found that married individuals are more likely to postpone their retirement dates than singles — 23.1 percent compared to 15.9 percent. Married couples are also more likely to have calculated a retirement savings goal — 55.7 percent compared to 40.8 percent of singles.
Interestingly enough, as employer-sponsored defined contribution plans are now the way the world, married boomers are more likely than single boomers to rely on them for retirement income. One reason may be that single boomers are more likely to not have children and therefore able to divert their income into riskier retirement plans, not sponsored by their employer. The study also found that singles were more likely to rely on Social Security for their retirement needs. Thirty-seven percent of married boomers stated that Social Security would be a major part of their retirement income while 52.7 percent of single boomers said they are depending on it.
Other findings include married individuals feeling more secure in retirement than singles, 39.5 percent compared to 28 percent; believing their retirement will be more comfortable than their parents, 41.3 percent to 25.8 percent.
Married boomers also place more importance on leaving an inheritance than their single counterparts.
Originally published on LifeHealthPro.com