Retirement Plans and Financial Expectations: A Survey of Leading-edge “Baby Boomers”
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Date
2000-11-15
Authors
MacGregor, Donald G.
Slovic, Paul
Journal Title
Journal ISSN
Volume Title
Publisher
Decision Research
Abstract
“Baby boomers” comprise a significant portion of the U.S. population, and the
leading-edge of this group will begin retirement within a decade. These individuals, in
the age range of 45 to 55 years, are currently at or near the peak of their incomeearning
ability and are in a stage of life where retirement planning to meet future
income needs is essential. This report presents the results of a national-level survey of
leading-edge baby boomers and how they plan to meet their financial needs in
retirement. Using a list-sample technique, 396 individuals in the age range 45 to 55
years were interviewed by telephone about their plans for retirement, the sources of
wealth they have accumulated, the sources of income that they expect in retirement,
and their perceptions about the future of the economy and financial markets. Health
care costs appear to dominate people’s concerns and are the most important use to
which they plan to put their accumulated wealth. Most individuals in this group expect
to receive retirement income from multiple sources, including Social Security,
employer pensions, work in retirement, and long-term investments in financial
markets. The majority of individuals surveyed indicated that they have a personal
portfolio of marketed securities. However, portfolio holders have much higher
expectations of market performance and portfolio return than do professional
financial advisors, in some cases twice as much on a ten-year average annualized
basis. This optimism appears to be the result of several factors, including a buoyed
sentiment about the long-term prospects for the domestic economy based on recent
market performance, and a tendency toward establishing multiple income sources for
retirement as a strategy for managing an uncertain future.
Description
17 pages
Keywords
Retirement, Financial expectations, Baby boomers
Citation
MacGregor, D.G., & Slovic, P. (2000, November). Retirement plans and financial expectations: A survey of leading-edge “baby boomers” (Report No. 00-8). Eugene, OR: Decision Research.