There’s no shortage of studies detailing the attitudes different generations have about money, saving and everything else. But when the number nerds get involved, it’s about to get real.
The Society of Actuaries (SOA) released two reports examining financial challenges and perspectives on retirement planning across the Millennial, Gen X, Late Baby Boomer, Early Baby Boomer and Silent generations.
And while we might quibble with what they describe as the “unique” financial and retirement savings challenges spoiled youngsters face, the information is nonetheless insightful.
The first, “Financial Priorities, Behaviors and Influence on Retirement,” provides a comprehensive look into how each generation is focusing on financial priorities and preparing for a financially secure retirement.
Key findings include:
- Millennials are generally struggling to establish themselves financially. This generation has a unique set of financial challenges compared to other generations, including being able to build up an emergency fund, saving for a home, and paying off their credit card debt.
- Gen Xers exhibit significantly more financial confidence, including an increased focus on saving for retirement.
- Late Baby Boomers are the most focused on financial planning, with the majority of this generation gearing up for retirement, and 51 percent reporting that their financial planning horizon is three or more years.
- Early Baby Boomers are most likely to be working with a financial advisor. They are also the most financially stable generation.
- The Silent Generation has much fewer savings priorities and tends of think of their finances in terms of the rest of their lives, which makes sense since almost all say they are already retired.
The second report, “Difficulties in Gaining Financial Security for Millennials,” offers analysis into the unique financial challenges of the Millennial generation, which is generally less financially stable compared to other age groups.
Key findings include:
- Thirty-four percent of Millennials indicate that debt is complicating their ability to manage their finances today. This generation also reports the highest volume of student loans–one in three–compared to all other generations.
- Millennials indicate substantial retirement concerns compared to other generations.
- These concerns around retirement make Millennials more likely to feel overwhelmed by their financial situation.
- Fifty-six percent of Millennials say their generation has it harder than their parent’s generation in terms of achieving financial security.