In an encouraging twist to recent reports on plunging retirement confidence, Charles Schwab’s latest quarterly retirement pulse survey, released Wednesday, shows more than half (54 percent) of Americans age 65 and older feel confident in their retirement readiness.
This older age set, Schwab reports, is twice as likely to feel confident as those age 18-34 (26 percent). Nearly half (44 percent) of boomer generation respondents express confidence in their retirement readiness.
Still, Schwab notes, there's room for improvement. Twenty-one percent of people age 65 and older and 26 percent of boomers still lack confidence about their retirement. Across all age groups surveyed, the number of people with concerns about retirement increases to 39 percent.
“Planning for retirement can seem daunting no matter how young or old a person is, but it all starts with a practical plan that can help address and alleviate concerns and boost confidence,” said Carrie Schwab-Pomerantz, senior vice president, Charles Schwab. “We know from our survey findings that across all age groups only 39 percent of people have actually crunched the numbers on retirement savings. So while it is reassuring to see confidence levels relatively high, we know that there is some ground to make up in terms of people sitting down with a plan.”
According to the results, working boomers who have planned for retirement were most likely to consult with a financial professional. Fifty-three percent have estimated how much they will need in retirement and nearly half (49 percent) of working boomers who have planned have done so with the help of a professional.
In addition, Schwab’s survey finds that along with confidence and the desire to seek professional help, dedication to saving for retirement also grows with age and peaks just before entering retirement. Although retirement takes priority for all age groups, boomers are nearly three times more likely to save for retirement than a vacation (74 percent versus 24 percent) while younger people age 18-34 are the most likely to prioritize saving for a vacation, with 44 percent electing this option.
Not surprisingly, uncertainties about retirement expenses still pose concerns despite growing confidence. More than one-third (37 percent) of boomers surveyed indicate that unexpected expenses such as medical or health costs in retirement are the most concerning aspect of retirement, followed by outliving savings (18 percent).
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