August 25, 2021 Retirement

Has COVID Affected Baby Boomers' Retirement Plans?

The coronavirus pandemic changed nearly every aspect of our lives, including our plans for retirement.

Baby boomers, who are either in retirement or very close to it, have had COVID-19 make an especially significant effect on post-work plans. That’s according to a recent survey from the Center for a Secure Retirement and CNO Financial Group. With the coronavirus, boomers had to help family financially, which meant less for their own retirement.

Here are five important ways the pandemic has changed baby-boomer retirement dreams. The results are based on a survey of more than 2,500 middle-income boomers – defined as Americans born between 1946 and 1964 with annual household income between $30,000 and $100,000 and less than $1 million in investable assets.

1. Their Main ‘Non-Negotiable’ Retirement Priorities Have Changed

Before the pandemic, 56% of boomers said maintaining financial security and independence was their top priority. Now the top retirement priorities are: spending time with grandchildren (43%); maintaining financial stability and independence (35%); staying active (34%); being able to travel (30%); and living close to family and friends (25%).

2. They’ve Supported Other Family Members Financially

Many middle-income boomers reported assisting family members financially during the pandemic, with 41% of those surveyed saying they did so.

3. They Haven’t Been Able to Save Much for Retirement

Among middle-income baby boomers who offered cash to support family during the pandemic, 75% say they haven’t been able to save as much for retirement as intended.

4. They’ve Delayed Plans to Move

Common retirement destinations like the beach or near grandchildren have been postponed. Among middle-income baby boomers who helped support family, 65% delayed their moving plans.