Getting a car, finding a date, and starting a career are common concerns for your average twenty-something.
But today’s 20 year olds, often called Generation Y or the Millennials, are also busy thinking about retirement.
Young American workers are not expecting Social Security or traditional corporate pensions to provide for their retirement . Their parents’ lack of retirement readiness is also increasing their awareness, and acting as a wake-up call.
“My dad would love to retire at 65, but he’s putting it off because of the swings in the aviation business. I’m concerned,” said JoAnne Farrell, a 29-year-old web manager at a design firm in San Francisco.
Retirement readiness is decreasing with time. According to a new study by State Street Global Advisors, 2012 is the first year that assets invested in pension plans top those invested in 401(k) retirement savings plans. At the same time, the study finds that Generation X, or people in their late 30s and 40s, are not nearly as prepared for retirement as their older counterparts, the Baby Boomers.
“Clearly it is the young who have the understanding that ‘somebody else isn’t worried about this for me. I have to do this,’” said Dallas Salisbury, CEO of Employee Benefit Research.Page 1 of 5 | Next Page