As baby boomers increasingly approach retirement, they're facing a huge shortfall in income, according to a new survey from BlackRock on attitudes about money and financial goals. People ages 55 to 64 who responded to the survey said they expected to have about $45,000 in annual income in retirement. But given the amounts they had actually saved, they would only provide an estimated annual income of $9,129.
Fewer than a quarter of these baby boomers regularly set aside money into long-term savings or investment plans. But they think they're ready. Nearly three quarters of the respondents said they feel financially secure and “prepared to pursue their dreams.”
Even affluent retirees—those earning more than $250,000 a year—hadn’t set aside enough to generate the income they said they needed to meet their retirement expectations. They need close to $60,000 per year to maintain their lfestyle, but have only saved enough to generate less than $40,000 per year.