The retirement planning process of African-American female, leading-edge baby boomers

Abstract

In less than two decades, African-American, female, leading-edge baby boomers (AAFLEBBs) will join the retirement population. AAFLEBBs are members of the largest generation in the history of the United States. This generation's economic well being has been threatened by high unemployment rates, factory closings and downsizings, eroding purchasing power, lack of financial management skills, and fluctuating income. There is a growing concern that boomers will not do well financially in retirement.

The purpose of this study is to better understand the retirement planning process of eight AAFLEBBs. Also, this study focuses on identifying areas where additional research may be needed regarding retirement planning. This study utilized a qualitative method known as the long interview.

Seven factors were identified that affected the retirement planning process of the eight African-American females studied. These factors were: the uncertain social security system, their children, job changes, parents' retirement, the fluctuating economy, day-to-day survival, and career development. Three categories were identified for additional research: retirement planning of baby boomers, methods for acquiring retirement information, and specific concerns of African-American females. One main conclusion resulted from the findings: the majority of the AAFLEBBs interviewed were giving little attention to retirement planning.

Further research should be conducted on African-American females in their own context. Researchers should investigate retirement planning and how people can best prepare themselves for this time of their lives. Gerontologists could explore African-American females’ perceptions of aging and what they want to happen in their senior lives. Extension specialists, adult educators, financial planners, and other family economics and management specialists should develop information to help various groups understand the importance of preparing and planning at early ages for their eventual retirement.