Don't Ignore Boomers: Raddon

While millennials receive widespread attention, financial institutions must not neglect the needs of baby boomers, a demographic nearly as large, according to results of the Lombard, Ill.-based Raddon Financial Group's study.

The report, which focused on consumers with an annual income of $125,000, found baby boomers considered saving money for retirement, having extra funds for emergency purposes and reducing taxes on savings and investments their top three financial priorities.

Servicing their diverse financial needs, such as asset growth, wealth/estate planning, debt reduction and retirement preparedness, will contribute to the relationships financial institutions cultivate with this demographic, Raddon said.

The report also said high-income consumers may be more willing to take on higher debt levels, due to higher paying jobs or more financial resources. However, financial institutions may want to consider offering streamlined solutions in debt consolidation and payment methods, particularly for baby boomers. Looking at current loan balances, including mortgages, consumer loans, and credit card balances, approximately four in 10 high-income baby boomers have debt levels greater than $100K.

“High-income consumers are not a homogeneous group; they exhibit unique financial behaviors,” Raddon research professional Lynne Cornelison wrote in a blog post.

Although categorized as affluent, boomer channel preferences, saving and investing habits, and debt levels varied widely, she added.

“The conventional wisdom is that higher earners are more prepared than other retiree classes for retirement, having saved more and dwindled down debt. This is true for some, but not for all,” Cornelison wrote.

When asked about their comfort level in making investment decisions, 32% of baby boomers said they prefer to receive advice on where to invest the majority of their money, and an additional 28% indicated they would be open to advice on where to invest some of their money.

In addition, findings show 67% of baby boomers were extremely or very concerned with knowing how much money they'll need to retire and maintain their quality of life in retirement, and 58% were concerned about reducing debt levels prior to entering their retirement years.