April is National Financial Literacy Month, but this week is National Retirement Planning Week, which means it's time for yet another round of depressing statistics about how unprepared we all are for retirement.
Let's focus on baby boomers – those born between 1946 and 1964, ages 55 to 73. Nearly half (47%) are already in retirement.
That's 34 million retired baby boomers.
Our dose of depressing data comes courtesy of the Insured Retirement Institute, which represents the annuity industry. The group's annual report, Boomer Expectations for Retirement, highlights all the problems: too little savings, underestimating health costs and unrealistic expectations of how much retirement income they will need.
Too little savings
The three "legs" of the retirement "stool" are Social Security, private pensions and personal savings. None is in great shape. The average Social Security check is $14,000 a year, hardly a cushy retirement. Only 23 percent of boomers ages 56-61 expect to receive income from a private company pension plan, and only 38 percent of older boomers expect a pension. As for personal savings, I'll make it simple: Most boomers have not saved nearly enough. In the worst case, it is really bad: 45% of boomers have zero savings for retirement.