Baby boomers delaying retirement
Who they are and how to help
Inflation can be like a bad house guest—it doesn’t come around very often, but most want it to leave when it does. In fact, rising prices have become a big enough concern that 26% of workers say they are delaying retirement. That jumps to 39% for Baby Boomers.
Our quarterly survey findings from workers can help you understand their outlook
and tailor your approach and recommendations―which may help your clients retire with confidence.*
Those who are not delaying retirement are still delaying something
Action
TDR = Those delaying retirement
NDR = Not delaying retirement
(Shown in order of
largest difference)
Traveling
TDR
39%
NDR
31%
Making a decision with an existing financial account
TDR
20%
NDR
13%
Moving
TDR
16%
NDR
10%
Home repairs
TDR
38%
NDR
39%
Purchasing a vehicle
TDR
24%
NDR
36%
Takeaway: Delaying some discretionary purchases may be a smart move while waiting for supply chain issues and prices to ease. If you have clients who are reducing spending on or eliminating essential expenses, suggest establishing or revisiting their budget.
A comparison of actions taken during 2021
Action
TDR = Those delaying retirement
NDR = Not delaying retirement
(Shown in order of
largest difference)
Checked the balance of my retirement savings more often
TDR
70%
NDR
55%
Tried to pay down consumer debt
TDR
43%
NDR
30%
Changed my investment mix to be more conservative
TDR
18%
NDR
10%
Increased the amount I'm saving in my emergency savings account
TDR
23%
NDR
16%
Increased the amount I'm saving for retirement
TDR
30%
NDR
26%
Changed my investment mix to be more aggressive
TDR
12%
NDR
8%
Revisited my budget
TDR
26%
NDR
24%
Met with a financial professional
TDR
24%
NDR
24%
Takeaway: Boomers delaying retirement seem to be more engaged—likely because they’ve identified a retirement savings gap. Help reinforce the behavior shown above—saving more, paying down debt, and reconsidering their investment mix. Support those behaviors and answer questions on their mix of investments to help make sure it's appropriate for your client’s situation.
Comparing financial confidence
Confidence that...
TDR = Those delaying retirement
NDR = Not delaying retirement
(Shown in order of
largest difference)
I will remain in a positive state of mind through my retirement years
TDR
45%
NDR
60%
I will have enough money saved to live comfortably in retirement
TDR
34%
NDR
46%
I will reach my financial goals for retirement
TDR
37%
NDR
49%
I have the knowledge to make good decisions with my retirement account if I change jobs or retire
TDR
47%
NDR
56%
Takeaway: Naturally, financial confidence lags for those delaying retirement. Reinforce that there are steps they can take (see above for saving more and attacking debt) and underscore their ability to be resourceful, hopefully boosting their confidence.
Comfort with financial concepts
I am comfortable with...
TDR = Those delaying retirement
NDR = Not delaying retirement
(Shown in order of
largest difference)
The amount of debt my household is trying to pay off
TDR
55%
NDR
71%
The balance of my emergency savings fund
TDR
46%
NDR
55%
Saving money
TDR
64%
NDR
69%
Spending money
TDR
45%
NDR
47%
Takeaway: Understand that those who are delaying retirement feel less comfortable in their ability to save and the balance of their emergency savings. Their amount of debt is likely more problematic. Help them determine the best approach to paying down debt while giving them more cushion in their emergency savings.
Financial stress
This causes me to feel stressed...
TDR = Those delaying retirement
NDR = Not delaying retirement
(Shown in order of
largest difference)
Discussing my retirement budget
TDR
34%
NDR
24%
Increased the amount I'm saving in my emergency savings account
TDR
27%
NDR
17%
Takeaway: These sentiments seem quite normal if you feel you can’t retire on time―however, note that the increase in stress for those delaying retirement is nearly 50% higher. Validate their feelings and focus on concrete steps they can follow to feel more secure.
General demographics
Attribute
TDR = Those delaying retirement
NDR = Not delaying retirement
(Shown in order of
largest difference)
Debt is at least a
minor problem
TDR
35%
NDR
23%
Female
TDR
45%
NDR
45%
Gender
Male
TDR
52%
NDR
52%
<$99,999
TDR
55%
NDR
55%
Household
income
> $100,000
TDR
45%
NDR
45%
Takeaway: There aren’t many differences in general demographics―rather, it may come down to how they’ve handled day-to-day finances. Those delaying retirement show a 52% increase in finding debt problematic over those who are not delaying retirement.
Next steps
Resources to use with clients:
We’re here to help you be successful in the overarching goal to help people achieve financial security. Starting with market intel and understanding your clients’ motivations can improve your recommendations.
For you:
As you prepare for conversations with clients or prospects, reach out to your Principal representative for additional perspective on these topics.
Fore more client insights, bookmark our Principal® retirement research and thought capital site.
* All data presented here, unless noted, is from the Principal® Retirement Security Survey, Plan Sponsor Results, September 2021 (Q3), segmented by Baby Boomers who report delaying retirement (n=174) and compared to those not delaying (n=309).
Principal®, Principal Financial Group® and the Principal logo design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and service marks of Principal Financial Services, Inc., in various countries around the world.
2006467-022022 | 2/2022