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Financial Press Release
Generation X Far More Ready To Take On Responsibility For Retirement Than Boomers
The survey, which measured the attitudes on retirement preparedness of Generation X, defined as those between the ages of 35 and 49, and baby boomers, between the ages of 50 and 68, also revealed that more than half believe they will need
In PNC's survey of 1,017 adults with investable assets of at least
The survey showed that while only one in seven (15 percent) of all survey respondents are still coping with the effects of the Great Recession, seven out of 10 changed their financial behavior as a result. A majority of Gen X (51 percent) say they are saving more for retirement, compared to 37 percent of boomers.
"One outcome of the Great Recession is that we are seeing meaningful changes in financial behavior in 71 percent of all survey respondents, especially among Generation X. One of the most challenging tasks is changing habits, particularly in managing spending and debt and increasing savings and seeking advice," said Celandra Deane-Bess, senior wealth planner for PNC Wealth Management and chair of PNC's national practice group for retirement.
Many of those surveyed know that their 401(k) or comparable plans will not be enough to get them over their retirement goal. On average, respondents invest 11 percent in their employers' retirement plan and another nine percent (on average) specifically for retirement outside of these plans.
Younger investors worry more that they will have enough to live on for the rest of their lives. Three quarters (73 percent) of Generation Xers agreed with the statement "I worry that my savings may not hold out for as long as I live" as opposed to 55 percent of boomers.
"It is important to note that the actual amount needed to retire comfortably is dependent on the individual level of spending in retirement and the cost of living in the area of the country one may reside. It is also affected by how effectively individuals have managed debt throughout their working years," Deane-Bess said.
Other insights from the survey included:
- No matter the age, an overwhelming number expect
Social Securityto be there for them. Ninety-four percent of all survey respondents agreed "I have earned my Social Securitythrough paying Social Securitytaxes and therefore it is owed to me."
- Healthcare concerns high: 84 percent of all survey respondents fear that healthcare costs will be too expensive in retirement, topping the list of all concerns among respondents. Generation X is slightly more worried than boomers (89 percent vs. 83 percent).
- Control is important: Nearly all (95 percent) said "it (is/was) very important to me to be able to retire when I (choose/chose) to do so."
- Generation Xers expect to retire younger at an average age of 63.6 years while Boomers expect to retire, on average, at 65.5.
- Of those who participate in a 401 (k) program at work, seven in 10 (70 percent) are offered an employer match. Nine in 10 (90 percent say that match is important to overall retirement savings.
An online media kit containing survey highlights and background information is available on PNC's website at http://www.pnc.com/pncpresskits.
The Perspectives of
The survey was designed by
This report has been prepared for general informational purposes only and is not intended as specific advice or recommendations. Information has been gathered from third party sources and has not been independently verified or accepted by The
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