|
Retirement dreams fade
|
 |
June 14, 2001: 5:03 p.m. ET
New study affirms baby boomers aren't saving enough for the golden years
|
NEW YORK (CNNfn) - Baby boomers are falling woefully short matching their long-term savings levels with their retirement dreams and are confused about financial planning, a new study shows.
Half of the people surveyed by ING Aetna Financial Services said they'd like to retire by 55, but only one in five said they'll have enough saved.
"By most indicators, retirement by 60 is not a very realistic prospect for most people," said Thomas McInerney, chief executive of ING Aetna. "We're talking about a serious disconnect between the golf course and the grindstone."
McInerney appeared Thursday on CNNfn's The Money Gang to talk about the findings.
|
|
VIDEO
|
|
 Tom McInerney, CEO of ING Aetna, talks about baby boomer savings habits. |
|
Real
|
28K
|
80K
|
|
Windows Media
|
28K
|
80K
|
|
Baby boomers are the influential group of 80 million Americans between the ages of 35 and 55. ING Aetna surveyed 500 people who earn between $50,000 and $125,000.
The study found 44 percent of boomers spend one hour or less on financial planning in a typical month, compared with 120 hours of television viewing.
"Some of this may be because financial planning is confusing," McInerney said.
And 44 percent of those surveyed said they find retirement planning "overwhelming or confusing," or they don't think about it at all.
Baby boomers blamed a late start on retirement planning and living beyond their means for their lack of preparedness.
About half of those surveyed said they don't expect to receive any inheritance money, although many financial pros have been saying for years that baby boomers are set to inherit millions from the wealth accumulated by their World War II parents.
But McInerney said new laws that raise the savings limits for retirement plans will help baby boomers get back on track.
President Bush signed legislation recently that raises the savings limit to $15,000 from $10,500 for 401(k) plans by 2006 and to $5,000 from $2,000 for IRAs by 2008. 
|
|
|
|
|
 |
|
