Generation Y Trends
When it comes to retirement, new research shows that Generation Y is not taking a cue from their Boomer parents, many of whom are facing financial challenges as retirement looms. The majority of Gen Y-ers have not started to save for retirement, and less than a quarter are actively planning for retirement.
According to Scottrade's fifth annual American Retirement Survey, 60 percent of Gen Y-ers saved nothing toward retirement last year and 40 percent plan to save nothing in 2011. In no rush to save, Gen Y-ers recommended people start saving for retirement at a mean age of 29.2 years old, giving even the eldest of the generation another year or so to start planning for retirement.
The findings also showed:
o Nearly half (46 percent) of Boomers didn't start saving for retirement until age 35 or older. However, if given a second chance:
o The majority of Boomers (58 percent) would have started saving at a younger age
o Nearly half (45 percent) would have saved more
o 50 percent would recommend starting to save earlier than age 25
It's safe to say that the three-legged stool of Social Security, savings and employer pensions upon which older generations based their retirement planning is weakened and falling apart. Unfortunately, many Boomers are learning that the hard way right now, and Gen Y doesn't seem to be paying much attention.