Ten years after the financial crisis began in 2007, almost two-thirds of middle income baby boomers feel they have not benefited from the economic recovery that followed and half of those boomers report having less savings now than before the crisis. That's just one of many findings from a report released today by Bankers Life Center for a Secure Retirement.
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Financial advisors working with such clients should understand that they "have a consumer who is still cautious and likely to value a guarantee more than the promise of higher returns," said Scott Goldberg, president of Bankers Life. "If you're going to serve this market you're going to have to have a full bag of tricks. They need holistic planning."
Bankers Life surveyed 1,000 baby boomers, aged 52 to 70, with annual incomes between $30,000 and $100,000 and less than $1 million in investable assets. Some were already retired; others were a still working.
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Only 31% of respondents feel well prepared for retirement, down from 41% before the financial crisis, and just over one-third expect a personally satisfying retirement, down from 44%, according to the survey, titled "10 Years After the Crisis: Middle-Income Boomers Rebounding But Not Recovered."
Perhaps that's because close to half (48%) expect to keep working in retirement, full time or part time, compared to 35% before the financial crisis, or because more than two-thirds (68%) of middle-income boomers are worried about another financial crisis occurring in their lifetime.
Also, just 34% of middle-income boomers expect to retire debt-free compared with 45% before the crisis; fewer (57%) feel confident about meeting their daily financial obligations in retirement, down from 65% before the crisis.
Not only are more middle income boomers expecting to work in retirement, but many are already cutting back on spending and adopting more defensive, conservative investments.
"There has been a mindset change since the crisis, and we're seeing that now in the willingness to work, to re-evaluate expenses and the types of products and investments that retiring boomers are favoring," said Goldberg.
