Alternative Plan Needed to Generate Retirement Income

WASHINGTON, D.C. - The Insured Retirement Institute (IRI) today released new research findings that reveal that Baby Boomers' expectations to continue working into their retirement years may not be as feasible as they believe. While almost two-thirds of Boomers are counting on employment during their retirement years as a source of income, several studies have found that half of workers exit the workforce prematurely.

"About half of retirees leave the workforce earlier than they planned because of, among other issues, health concerns or a lack of employment opportunities," IRI President and CEO Cathy Weatherford said. "As we live longer, it's becoming more commonplace to accept the idea that we have to work a few extra years. And rightfully so. But Boomers must reevaluate their plans and develop contingencies in case they cannot work as long as they intend. This evaluation requires identifying alternative sources of lifetime income."

According to IRI data, 35 percent of Boomers are planning to work into their late 60s and beyond--with 12 percent of Boomers planning to work into their late 60s and another 23 percent planning to work to 70 or later. Yet labor force participation rates in 2010 reveal that only 17.4 percent of those aged 65 and older were still in the workforce, according to the Bureau of Labor Statistics.

The full report can be found HERE.

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. IRI proudly leads a national consumer education coalition of nearly twenty organizations and is the only association that represents the entire supply chain of insured retirement strategies: Our members are the major insurers, asset managers, broker dealers, and more than 150,000 financial professionals. IRI exists to vigorously promote consumer confidence in the value and viability of insured retirement strategies, bringing together the interests of the industry, financial advisors and consumers under one umbrella. IRI's mission is to: encourage industry adherence to highest ethical principles; promote better understanding of the insured retirement value proposition; develop and promote best practice standards to improve value delivery; and advocate before public policy makers on critical issues affecting insured retirement strategies and the consumers that rely on their guarantees. Visit www.IRIonline.org today to experience the vast resources of the Insured Retirement Institute for yourself.     

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