New Data Highlights Retirement Challenges Facing Boomers

Three years ago, The NHP Foundation, a New York-based non-profit real estate developer that builds and manages affordable housing, started surveying the general public on different social issues and using the collected data to generate press coverage and raise public awareness.

In 2018, the company surveyed 1,000 working adults age 50+ to determine their retirement preparedness. The results show a disconnect between Baby Boomers’ current financial status and where they perceive themselves in retirement. Here are some highlights:

  • 73 percent of Baby Boomers expect to delay retirement.
  • Compounding these findings, a full 31 percent stated that they have not prepared a retirement budget, while 62 percent of those who have budgeted stated that SSI (Social Security Income) will contribute to at least half of their monthly income.
  • 65 percent of those surveyed stated that they have not budgeted for unforeseen health-related expenses. Of those without a retirement budget and planning on SSI for at least half of their income, 72 percent noted that they have not accounted for unforeseen health-related expenses.
  • 70 percent of those surveyed are at least somewhat confident that they will experience the retirement that they seek, and out of those that expect to delay retirement, 63 percent believe they will achieve their desired retirement.
  • In order of importance, the three outcomes that worry prospective retirees the most are an inability to afford quality healthcare (36 percent), dependency on children (28 percent), and being forced to choose a living situation inferior to their preference (22 percent).
  • For 85 percent of those surveyed, their preference is the ability to continue living in their current home. Of the two-thirds of those surveyed that rent or have a mortgage, 76 percent either have no retirement budget or will rely on SSI for at least half of their income, though 83 percent still believe they will be able to age in-place. Along with these findings, only 17 percent of those who have no retirement budget and will rely on SSI for at least half of their income, think they will have to move. But the evidence shows that many will have to consider alternatives to aging in place. These include everything from renting out a room (though less than 17 percent of those surveyed feel this is a likely option) to seeking out affordable housing.