Generation X can learn from boomers

"Listen to your elders" is a phrase we often hear, but in the case of planning for retirement, we should really pay attention. As baby boomers near their golden years, they bring mixed reactions to retirement including optimism, worry, and perhaps a tinge of regret.

According to a survey of 2,500 adults ages 45 to 64 conducted by a US firm, pre-retirees are generally optimistic; however they regret not having started to plan sooner for retirement. A lesson Generation X can learn from.

Planning for retirement

Although the majority of those surveyed expect to enjoy a standard of living equal to or better than their parents, 59 percent of them had not done any formal retirement planning, either with a financial professional or on their own. Seventy-one percent felt that a lack of money in retirement might prevent them from accomplishing their goals, and another 71 percent wish they had started saving at their first full-time job.

Even though one in four baby boomers haven't started saving for retirement, a whopping 86 percent are urging Generation X to start saving as soon as possible.

Boomers remain optimistic

While pre-retirees may be sounding cautionary, baby boomers are still looking forward to retirement. Forty-five percent plan to travel, 39 percent plan to spend more time with family, and 23 percent plan to take up new hobbies and activities.

But even with these positive plans, nearly half of the boomers expected to work in their future. Forty-three per cent plan to work either full- or part-time in retirement and 39 percent expect to need the income. Nearly one-third will work to stay busy. But no one wants to work too hard during retirement. They want a job that they can enjoy and that isn't too stressful.

Despite 58 percent of boomers having resisted temptations such as vacations, vehicles and impulse shopping to save for retirement, the realities of life have prevented most from saving as much as they'd like. Starting too late (35 percent), followed closely by health care costs (32 percent), low-paying jobs (29 percent) and credit card debt (28 percent) have been obstacles to saving for retirement.

These results have shown us that starting to plan early for our retirement is necessary to ensure a comfortable financial future. For baby boomers, it's not too late to improve your situation, and for younger generations, planning as soon as possible is the best course of action.

How to prepare

You should not only be saving for retirement, but for unanticipated life situations. Illness is the prime situation that could affect a retirement plan. That is why it is important to start your financial strategy as soon as possible.

Survey results reveal retirement preparation is a family affair, with 41 percent planning to talk with other family members and 37 percent planning to confer with adult children. Communicating with family and a financial professional can provide insight into the realities of retirement and what you should be doing today to plan for the future that you want.

Baby boomers view retirement as an opportunity to take a step back and reflect on their life. Thirty-five percent selected "The Long and Winding Road" as the song lyric that most closely resembled their vision of retirement. If Generation X strives for the boomers' retirement ideals, effective financial planning is the best way to ensure the retirement years are golden.