Are Baby Boomers Saving Enough for Retirement?

The Baby Boomers are the largest generation ever to reach retirement age. The first Boomer turns 62 in January 2008 making this an issue on the financial forefront. In this study, based on survey data from The Ameriprise Financial Money Across GenerationsSM study, I examine financial preparedness. I examine the degree of financial preparedness by various demographic characteristics and conduct a more complex multivariate analysis to determine which variables have significant effects on preparedness. The results show that education level and gender do not play a significant role in the financial preparedness of an individual. The findings also show that although having a financial advisor does not relate to financial preparedness, having a financial plan is important. While the research does not solve the problem of Boomers’ lack of adequate financial retirement planning, it gives insight into how to improve the rate of preparedness in the future.