Retirement planning spans three generations of Americans, writes USA Today in a recent article, which examines the specific retirement issues those of the Baby Boomer, Generation X and Millennial generation face.
Baby Boomers have expressed the most concern, while the Millennial generation appears the most confident about retirement.
The article notes a recent study by the 15th Annual Transamerica Retirement, which found “35% of workers believe the recession has not yet ended. That figure rises to 40% among Baby Boomers. Meanwhile, 65% of workers believe the recession has ended, but they have mixed views about the strength of the recovery. Only 14% say they have fully recovered financially from the historic downturn.”
Baby Boomers, born between 1946 and 1964, are the least confident generation when it comes to retirement, according to the Transamerica Retirement poll.
“Only 14% of respondents said they are very confident, and 41% believe their standard of living will decrease, the worst percentage among all generations,” according to author Eric McWhinnie. “In fact, 65 % plan to work past age 65 or do not plan to retire at all.”
Catherine Collinson, president of Transamerica Center for Retirement Studies, recommends that Baby Boomers become more proactive in their retirement planning to ensure they can continue working until a later age or fully retire.
Those in the Generation X demographic, born between 1965 and 1978, were the first generation to have access to 401(k) plans, McWhinnie writes. While more than half expect to self-fund their retirement with 401(k) or similar plans, this generation has also been more likely than others to rely on 401(k) loans and early withdrawals.
“Generation X will begin turning 50 next year, a loud wake-up call for them to get laser focused on planning, saving and investing for retirement,” Collinson told USA Today. “Their clock is ticking but they still have time to substantially improve their retirement prospects. The future is now.”
Millennials, born after 1978, expressed the most confidence about their futures, according to the survey. One in five are very confident that they will be able to live a comfortable lifestyle in retirement. Meanwhile, 60% expect to retire before age 65.
Millennials expressed that advances in technology have been useful in planning for retirement, as well.
The survey found that 70% of Millennials are already saving for retirement, starting at an unprecedented median age of 22.
Written by Cassandra Dowell