Baby Boomers Have Realized They Won't Be Able to Retire

A Corporate Executive Board survey finds that Baby Boomers are facing harsh economic realities.

In a recent survey of baby boomers (aged 45-69), the research and advisory firm Corporate Executive Board found that mass market boomers do not expect a "stereotypical" retirement — instead, they expect to reduce spending and to continue to work part-time past retirement age. The survey of 1,250 baby boomers was intended to gauge how the financial crisis has impacted baby boomers attitudes' and financial behavior as it relates to their retirement plans.

The research categorized boomers into three groups, based on their total investable assets: (1) mass market boomers (<$100,000), (2) mass affluent boomers ($100,000 - $1,000,000) and (3) high-net worth boomers (>$1,000,000).

Only 14% said their bank teaches them how its products and services help them.

Sixty-six percent of mass market baby boomers experienced an event that had a major impact on their financial situation.

Nearly one-quarter of baby boomer households lost their job.

Fifty-eight percent do not have a formal budget, so not surprisingly only about one-quarter of mass market baby boomers feel satisfied with their savings.

Over one-quarter of boomers moved savings away from their primary provider.

Mass market boomers are financially active. Almost 40 percent of them are shifting deposits either toward or away from their primary provider.

The research group says banks should offer their boomer customers educational sites to solve holistic financial challenges, not push products, and savings accounts that reward customers for saving more, not consolidating business. Many banks are already doing this.