Talk of retirement saving is supposed to put people to sleep, but not Gen X, and if recent research is to be believed, it’s a problem.
Nearly two-thirds of cynical generation are kept up at night thinking about financing their retirement, and one in three is worried they’re not earning enough money to invest for the future,
The dot-com bust, the global financial crisis and the housing collapse, as well as stagnant wage growth during their formative adult years are the reasons.
Calling it “Generation AnXious,” Heather Lord, senior vice president and head of strategy and innovation at Capital Group, who performed the survey, notes that “Perhaps because of these concerns, Gen Xers long to do better than the average market and say actively managed funds can help them reach these goals.”
Each generation has taken the need to start saving early more seriously, according to Capital Group. Fifty-nine percent of Millennials began saving for retirement before age 25, compared to 42 percent of Gen Xers and 28 percent of Boomers. And a quarter of Millennials believe children born today should start saving for retirement even before their 18th birthday.
- Despite concerns of Millennials about saving enough money for retirement, they do dream big. They expect to retire later than Boomers, but are least likely to expect to keep working part-time. Two-thirds of Millennials want to spend their time in retirement “traveling the world.
- All three generations agree that sticking with a long-term investment strategy makes them feel smarter as investors, with nearly two-thirds (65%) of Boomers adhering to this buy-and-hold mindset compared to 49 percent of Gen Xers and 43 percent of Millennials.
- Boomers also have the most altruistic views about volunteer work, and are twice as likely as Millennials to say they would like to donate to causes they are passionate about in retirement.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
