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IRI Exclusive Report: Middle-Income Boomers Market Remains Untapped

Source: Insured Retirement Institute (IRI)

Posted on 21 Aug 11

The Insured Retirement Institute (IRI) released its exclusive report "Middle-Income Boomers and Retirement: Tapping the Significant and Underserved Middle-Income Market." 

The report found that Middle-Income Boomers - those with income between $30,000 and $74,000 - recognize the need for retirement planning, yet only 50% have determined their financial need for a comfortable retirement.  Additionally, while roughly one-half (48%) say they lack the confidence to maneuver the ins-and-outs of investing, less than 50% have contacted an investment advisor, according to an IRI survey.  Of those needing advice, only 43% have contacted an investment advisor, leaving a substantial gap for advisors to fill. 

"The middle-income Boomer market provides a great opportunity for advisors to grow their client base while helping a large segment of the population reach their retirement goals," said IRI President and CEO Cathy Weatherford. "Our research shows that although Boomers have the means to save for retirement, they do not believe they have the knowledge to select the best investment vehicle to meet their future needs.   Clearly, financial professionals have the knowledge and expertise to serve this market and can provide the needed guidance to Boomers looking to fund and build their retirement nest egg."

IRI's Middle-Income Boomers report also found that:

  • Boomers who use advisors believe they are doing a good job preparing financially for their own retirement, with 90 percent stating so, compared to 63 percent of those who do not use advisors.

  • Of the middle-income Boomers who have consulted a planner, most do so to seek their expertise-whether it's in building a plan or validating a plan that the Boomers have constructed themselves. 

  • When asked to identify the most important trait they look for when selecting a retirement investment product, middle-income boomers identified principal protection (19% of respondents) and guaranteed income (17%).

  • Middle-income boomers have numerous concerns about retirement savings and income - 49 percent have not tried to determine the amount of how much money they will need to live comfortably during retirement and 48 percent question their knowledge of investing and investments.

  • Most middle-income Boomers can expect to receive an inheritance during their lifetimes, increasing assets by approximately 30% of their current wealth.

About the Insured Retirement Institute

The Insured Retirement Institute (IRI) is a not-for-profit organization that for twenty years has been a mainstay of service, commitment and collaboration within the insured retirement industry.  Today, IRI is considered to be the authoritative source of all things pertaining to annuities, insured retirement strategies and retirement planning.