I recently read a study done by Metlife. Specifically, the Metlife Mature Market Institute conducted a study (with the help of GFK Custom Research) on the Baby Boomer born in 1946 to get a look at the “average 62-year old boomer.”
So, what gold did they discover? Since this blog is about finances and retirement, here are some of the nuggets:
The average member of the 1946 birth group…
- …has an annual income of $71,400.
- …has a household net worth, excluding home value, of $257,800.
- …has an average of six financial products/plans including 401(k)/403(b), IRA, health insurance, life insurance and CD/savings accounts.
- If they do not already have investments such as stocks, bonds, annuities, or long-term care insurance they have few plans to purchase these in the next 12 months.
- Their home is currently worth $297,900 and they own it.
- They do not have a professional financial advisor.
The study can be found at this site (forgive the ultra-long domain, not my doing):
Down the right column is the PDF link to the study, plus a few others on retirement that might be worth a read, depending on what you do for a living. You can also read about the team of gerontologists that may be studying what your age group is doing and deciding…
It is a good study and has useful info in it, plus their site is another valuable resource if you are working with this demographic. These are professional researchers so I don’t have much ground to argue with their findings, but they have one section on this age group stating they are very happy to consider themselves “retired” and to use that term. In my limited work in this space, I find very few people in this bracket who like saying they are “retired.” I hear more people talking about their second careers, their new stage of life, their volunteer work and often they say that they would go crazy if they retired. I guess it depends on who they are talking to when asked, perhaps. It could also be that I frequently talk to more self-employed types who have worked for themselves, built a company, sold it, and are eager to do something innovative or energizing. Sure, they play golf, sail, travel, but they also have a shingle hanging that says, “for hire.”
Indeed, some of my thinking here is influenced by the article I just read in BusinessWeek SmallBiz (Feb/Mar 2008) written by Eileen P Gunn on Boomerang CEO’s. Great story with insight into what a retirement of the future may look like, at least for the business-minded.