To better assess the financial health of Americans, MoneyTips recently commissioned a survey of two key demographic groups: Baby Boomers and the Middle Class. Survey results are sobering, to say the least, as they reveal a widespread lack of financial preparation among members of both groups. The survey polled 535 adults and has a 4.7% margin of error. Survey findings are shown in the infographic above.
A whopping 24 million Boomers (32%) reported that they don’t even have a financial plan in place. Of those who do, Many are Struggling to Execute That Plan.
According to the survey, a staggering 31 million Boomers (41%) reported being worried about retirement. Winnie Sun, founder of Sun Group Wealth Partners in Irvine, California, points out that, “The most common mistake Americans make as it pertains to retirement planning is not planning until they’re getting ready to retire. We host workshops for employees to attend and often you won’t see attendees until the week they’re leaving their company. They would have benefited from attending sooner, but life just got in the way.” Her advice? “The best course of action is to start planning when retirement isn’t near.”
The survey also revealed that nearly half of baby boomers with children (48%) have not saved enough to pay for their kids’ college education. A noted authority on corporate 529 College Savings plans, Sun adds, “Education debt has surpassed both auto and credit card debt in the U.S. because parents have not successfully planned for this vital expenditure. Consequently, their children exit college with a debt burden never before seen in our society.”
But it’s not just their future finances that cause boomers to fret. 41% of them reported that they are not on-target toward meeting their financial goals, while 37% are uncomfortable with their current standard of living. No wonder AOL Daily Finance reported the survey results as “scary.”
What, if anything, can help improve this situation?