It will take Baby Boomers 10 more years to retire than most had initially planned, according to a survey of over 1,600 retirement reports.
Instead of expected retirement at the age of 65, the number has gone up to 75, according to My New Financial Advisor's survey.
The survey was based on data provided by users of FreeRetirementReport.com, an online arm of My New Financial Advisor where Boomers input their information for current income/expenses and future income/expenses. These income and expense variables were then compared against industry standard market returns for the Boomers existing investment portfolios.
Results from the analysis revealed that inflation and taxation were among the biggest concerns in the depletion of retirement portfolios.
“The Boomer’s income and expense assumptions in our analysis incorporate the low inflation environment of today and we utilized the same asset class assumptions that all advisors use nationally, which are high,” said Frank T. Troise, founder of My New Financial Advisor.
Loss of income, insufficient savings, low market returns, higher than expected current expenses, past due taxes, and minimal to non-existent wage growth were also among factors that posed challenges to survey participants, according to the analysis.