Most boomers content in retirement, but Social Security dependence is still real

At first glance, retired boomers appear to be a contented lot, with many reporting that their financial situation in retirement is “better” or “as they anticipated” and that they don’t need to "unretire". Those responses, however, are counterbalanced by significant challenges, according to a new survey.

In a poll commissioned by retirement industry fintech provider IRALOGIX and conducted in May 2024 found, 54 percent of retirement Boomers said they’re "highly confident" or "confident" about their financial readiness for retirement, with nearly three-quarters saying their financial situation was "much better" or "just as they anticipated" before they retired.

However, roughly a third of respondents said they’re “highly dependent” on Social Security for their monthly expenses (34 percent) and consider it their primary source of retirement income (36 percent). Another 37 percent indicated just medium or strong dependence on Social Security checks.

“Retired boomers have a unique perspective on financial security compared to other generations,” Peter J. de Silva, CEO of IRALOGIX, said in a statement. “Unlike younger age groups, boomers appear to view financial security as not just about accumulating wealth but also about managing unexpected costs and ensuring long-term stability.”

Among various other retirement income sources, the Boomer-generation respondents in the study used traditional monthly pensions (16 percent) and employer-sponsored retirement plans (15 percent).

More than half (56 percent) said they began taking retirement savings seriously between the ages of 25 and 40 years old. Around 54 percent said they handled their own retirement accumulation strategies, while 27 percent said they turned to financial professionals to help plan for their retirement.

Financial stress and worry are a reality of life for half of the respondents, who said their stress levels were on par with what they felt as workers. And as many retired boomers faced an income crunch, 26 percent had no one but themselves to blame for either exhausting their nest egg or coming to the brink of total depletion.

“Boomers might be among the last generation to enjoy reliable, guaranteed income sources like Social Security and monthly pensions," de Silva said. "This signals to younger generations the urgency of saving for retirement independently of these disappearing income streams.”

While three-fifths (58 percent) of those surveyed said they’re doing exactly what they envisioned they would do in retirement – including traveling, spending quality time with loved ones, and just enjoying their lazy days – 23 percent say they’ve crossed some items off their list, but their income is “preventing them from doing the rest.”

The poll also shed light on Boomers’ estate plans, with 28 percent saying they’ve actively set aside funds as they plan an inheritance for the next generation. One in five (21 percent) say they’re planning to use up all their financial resources in retirement, while one-third (34 percent) haven’t decided.