For many who are decades away from leaving the workforce, retirement may seem like an abstract concept. But once you’ve entered your late fifties—like the youngest Baby Boomers, turning 57 in 2021—retirement may begin to seem very real.1
A recent survey of Boomers found that thanks to the COVID-19 pandemic, 52% of those who are not yet retired are concerned about being able to retire.2 This survey looked at a representative sample of Boomers age 57 to 75, earning between $30,000 and $100,000 per year, with under $1 million in investable assets, and came to some surprising conclusions.2
Learn more about how the pandemic impacted Boomers’ retirement plans and what factors this generation finds are important to a happy retirement.
Boomers’ Retirement Plans
41% of Boomers polled in this survey reported financially supporting other family members during COVID.2 For many, this has had a direct impact on their financial readiness to retire. And more than half of the surveyed Boomers who haven’t retired yet have been forced to borrow from or liquidate some of their retirement savings to get by during COVID.3
As a result, the majority of non-retired Boomers who were surveyed reported that they’ve had to reevaluate their retirement plans and budgets. Many are more concerned that they won’t have enough money to retire at all or to have as comfortable a retirement as they had planned.3
COVID also had a major impact on Boomer lifestyles, both before and during retirement. Just over half of all Boomers had to cut back on their entertainment (whether due to budget concerns or social distancing requirements); 44 % spent less time traveling than they wanted to, 39 % saw a decrease in their hours at work, and 18 % had one or more of their adult children move back into the family home.3
Boomers’ Retirement Priorities
Due to its wide-ranging lifestyle impacts, the pandemic also reshaped some priorities. Although more than half of all Boomers focused on maintaining financial stability and financial independence pre-pandemic, now less than one-third of respondents list this as their top priority. Instead, 43 % of survey respondents now report that their main priority for a post-COVID retirement is spending time with family members, including grandchildren. A third of respondents hope to maintain an active lifestyle, while another third wants to travel once it’s safe to do so.3
Important Disclosures:
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. 1 https://en.wikipedia.org/wiki/Baby_boomers 2 https://www.centerforasecureretirement.com/Posts/Pandemic-Finds-Boomers-Financially-Supporting-Family-Over-Retirement 3 https://cno.mediaroom.com/2021-07-22-Center-for-a-Secure-Retirement-Study-Pandemic-Forces-Boomers-to-Financially-Support-Family,-Greatly-Impacting-Their-Own-Retirement-Plans
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