Many baby boomers are expecting retirement to be delayed at least 4 years according to CPA financial planners surveyed by the American Institute of Certified Public Accountants.
That’s even with re-surging confidence in the stock market, which, with recent gains, is helping replenish retirement accounts. Fifty-two percent of CPA financial planners said their clients – who typically have between $500,000 and $5 million in assets – are at least somewhat confident in the stock market now. That’s a turnaround from a year ago when 54 percent said their clients were not very confident.
“Boomers have been scarred by the economic turmoil of the past few years and face complex challenges going forward,” said Clark M. Blackman II, chair of the AICPA’s Personal Financial Planning Executive Committee. “While more optimistic about the markets, many Boomers remain uncertain about the U.S. economy and their own situations as they contend with job loss – their own and their children’s – lower home values and rising education costs.”
The first group of Baby Boomers started to turn 65 earlier this year. According to government statistics, this group of Americans equals 77 million and represent about 37 percent of the nation’s total population age 16 or older.
The survey also found that 51% of CPA financial planners said at least one client was turned down for a mortgage or refinance in the past year. The most common reasons: Lower home values and higher underwriting standards.
“These survey results show optimism tinged with some caution,” said Lyle K. Benson, president of L.K. Benson & Co. in Baltimore, Md. and member of the AICPA’s Personal Financial Planning executive committee. “Having weathered the economic storm, clients are turning to CPA financial planners to help make sense of the new reality and get back on track toward their financial and personal goals.”
The online survey was conducted between January 12 and February 1 and made available only to members of the AICPA’s Personal Financial Planning practice section. There were 372 responses. The confidence rate is 95 percent, with a margin of error of plus or minus 5 percentage points.
For a copy of the survey, see here.