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Benefits December 20, 2011
Generations X and Y Saving More for Retirement than Older Generations
December 20, 2011 (PLANSPONSOR.com) - Generations X and Y have embraced the concept of self-directed retirement savings more so than their parents and grandparents.
Reported by Tara Cantore
According to a survey of working Americans from TD Ameritrade, 85% of Americans have an Individual Retirement Account (IRA) and/or a 401(k)/403(b) plan; more than a third (36%) have both. But it’s the younger generation of workers who are saving more diligently: 25% of Gen Y and 23% of Gen X are funding both their 401(k)/403(b) plans and their IRAS, compared to 16% of Boomers and 9% of Matures. Yet, 74% of Boomers are not completely confident that they will reach their savings goal by the time they are ready to retire.
Many Boomers are also missing out on another chance to bolster their retirement savings. Among the 50+ crowd, those eligible for the “catch-up contribution,” a feature allowing them to contribute an additional $5,500 to an employer-sponsored retirement plan, more than two-thirds (68%) are not taking advantage of the opportunity. Half of them are skipping out because they can’t afford it, but another 21% said they had never heard of it.
The survey results are based on a survey conducted by Maritz, Inc. on behalf of TD Ameritrade Holding Corporation, and included 1,509 respondents between 22 and 81 years of age who participated in a telephone survey from July 20-August 17, 2011.
For more information on TD Ameritrade’s Annual Investor Index survey series, including key findings, visit www.amtd.com.