Challenges for US Baby Boomers Approaching Retirement

This report by Allianz Global Investors looks at the challenges facing US baby boomers as they approach retirement. Planning and saving for retirement has long been contingent on making sufficient contributions and choosing the right investments. Attention in the past was predominantly focused on the accumulation of pension wealth. It is not that accumulation has become less important. The difference is that individuals increasingly are assuming more responsibility for managing the dissaving process. In the last few years, the focus has shifted to converting accumulated pension assets into a retirement income stream. The US retirement market faces a compound problem. A lack of savings and an often insufficient knowledge of how to manage the dissaving process are two conspicuous challenges.

Baby boomers are in a transition phase. Their focus is shifting from asset accumulation to income generation. The share of the overall population seeking retirement planning strategies is increasing. Early baby boomers already may be in the process of developing concrete decumulation strategies; late boomers, on the other hand, already may have started deciding how to restructure their portfolios to suit their retirement needs.

PDF (1664 kb)