Advisor Today - July/August 2015 - (Page 36)

FINANCIAL PLANNING FINANCIAL PLANNING By Ayo Mseka Financial Future Less Than Rosy for Boomers and GenX A new study finds lost confidence in traditional retirement and lack of active planning. T he Baby Boomer generation is in the throes of retirement and Generation X is only steps behind. But according to a study by Allianz Life Insurance Company of North America, the vast majority of both groups believe that the traditional definition of retirement is a "romantic fantasy of the past." More than eight in 10 (84%) from both generations said they feel that a retirement starting at age 65 spent "doing exactly what you want" is now unrealistic. Furthermore, the study of 2,000 Americans-including 1,000 Baby Boomers (ages 49-67) and 1,000 Gen Xers (ages 35-48)-found that Gen X respondents were much more hopeless about their ability to achieve retirement goals and about their overall financial situation than were their Boomer counterparts. More than two thirds (67%) of Gen Xers agreed with the idea that supposed targets for how much you need to retire are way out of reach versus less than half of Boomers (49%). Significantly more Gen X respondents also admitted to getting "bogged down with uncertainty when planning for retirement" (64% versus 43% of Boomers), believing it is "useless to plan for retirement when everything is so uncertain" (44% versus 31% of Boomers), and feeling that they will "never have enough money to stop working" (68% versus 43% of Boomers). "It's been widely reported that Baby Boomers are worried about their retirement, but the financial planning and retirement concerns of Generation X have gotten less attention," says Katie Libbe, Allianz Life vice president of Consumer Insights. "While our study confirms that many Boomers still lack 36 ADVISOR TODAY | July/August 2015 Nearly half of Gen Xers (48%) and more than a quarter of Boomers (27%) say they are not clear about the amount of money they'll need to retire. confidence about their future, it reveals alarming realities about the significant angst and pessimism Gen X feels regarding the current and future state of their finances. They're the next generation that's quickly approaching retirement and their hands-off approach to planning and preparation is alarming." Gen X: The disadvantaged generation Each generation in the study generally feels their circumstances have been tougher to manage. For example, both Gen Xers and Boomers think that their generation is burdened with more expenses (90% and 80% agreement, respectively), more uncertainty (86% and 72%) and more risk (78% and 64%) than their counterparts. However, when it comes to jobs, money, and retirement, even Baby Boomers agreed that Generation X has it much tougher in the following areas: * Planning for retirement-86% of Gen Xers and 65% of Boomers agreed Gen X has it tougher. * Saving money-89% of Gen Xers and 68% of Boomers agreed. * Keeping a job-85% of Gen Xers and 69% of Boomers agreed. * Staying out of debt-90% of Gen Xers and 72% of Boomers agreed. * Getting a job-85% of Gen Xers and 73% of Boomers agreed. Both groups relaxed about planning Despite clear concerns about their financial situations and prospects for a comfortable retirement, both generations are surprisingly relaxed about planning for their financial futures. More than half of each generation (Boomers 65%, Gen X 53%) agreed with the statement "when it comes to retirement, I just have this feeling that everything's

Table of Contents for the Digital Edition of Advisor Today - July/August 2015

From The Editor
New Products
How Do You Create the Million-Dollar-Plus Practice?
Traits of Top Performers
The Business Benefits of a Pipeline Mentality
What Does It Mean to Act Ethically?
Variable Universal Life is Back
Sell More LTCI By Selling Less!
Overcoming the Most Common DI Objections
Divorce DI
Mitigating Retirement Risks with Life Insurance
Creating Irreplaceable Capital
Closing the Gap
Financial Future Less than Rosy for Boomers and GenX
Estate Planning and Annuities?
Ignite Your Sales Potential
A Closer Look at BTID
Upholding the Tradition
NAIFA’s Candidates for Election
Addicted to Rejection
What is Keeping Your Senior Clients Up At Night?
Advertiser Index
Back Page

Advisor Today - July/August 2015