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Boomers Not Following in Parents’ Footsteps

The Plan Advisor, 6/10/08

Abstract:

Baby Boomers are failing to follow the retirement planning disciplines that enabled their parents to achieve a satisfying retirement, according to a new study by NAVA, the Association for Insured Retirement Solutions.

One reason for that could be that Boomers have a less positive view of their parents' retirement than their parents have, according to a NAVA press release. Sixty-four percent of Baby Boomers categorized their parents' nest eggs as "modest" or "quite small." Only 37% of Boomers surveyed said they would be very satisfied with their parents’ lifestyles, and the majority of the Boomers surveyed expect a different lifestyle; with 86% of those respondents expecting it to be better than that of their parents.

Among retired parents of Boomers, most attributed their retirement success to the avoidance of credit card debt (81%), the creation of an emergency fund (86%), and their ability to save enough for retirement (79%). Baby Boomers are not doing as well in these departments.

So far, 57% of Boomers reported success in avoiding credit card debt—24 percentage points less than their parents’ responses.   Less than half (44%) of Boomers said they have done a “good job” saving for retirement. Only 32% of Boomers said they did an “excellent job” creating an emergency fund.

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