Gen-X'ers Ahead of Parents in Retirement Planning, Says Edward Jones

PRLog (Press Release) – Mar 21, 2008 – Generation X'ers are well ahead of other generations when it comes to saving for retirement, according to a new study from financial brokerage firm Edward Jones.  The study shows that each generation has begun to save at a younger age.  Sixty-eight percent of the work force between the ages of 25-34 say they have already started saving for their retirement, yet only 34% of 65 say they have began saving before that were 34 years old.

"It's encouraging that younger generations are beginnings to save earlier," said Andrew Brake, and Edward jones financial in Greensboro, NC.  "No doubt this is partly due to a growing recognition that company pensions are becoming a thing of the past and the long-term solvency of Social Security is still in question."

Despite each generation starting to save earlier that the previous one, 69% of the youngest respondents (18-24) say they haven't yet started making provision for retirement.  The survey also shows that a higher education is highly correlated with retirement planning.  Eighty-five percent of college graduates have begun to save for their retirement, while only 62% of people with a Graduate Efficiency Dimploma (GED) have put money aside.

The survey also showed that the higher the household income, the more likely respondents will have started saving for retirement.  Eighty-three percent of workers with annual household incomes over $50,000 have started to save for retirement, compared with only 39% of those with income under $50,000.  The savings habits of people with children also impact the age they started putting money away for retirement.  Of those respondents under the age of 34, 63% of those children had already started saving for retirement, compared with only 46% of those without children.

"The cost of retirement depends on where you live, your health, desired lifestyle and financial assets, and with so many variables, the best strategy is to start saving early," Brake said.  "Gen-Xer's are clearly learning from their parents' mistakes and are facing the future now, rather than making plans at the last minute."

Andrew Brake, Financial Advisor

You can contact Andrew Brake at:

Andrew Brake
Financial Advisor
1124 N. Church St., Suite 300
Greensboro, NC 27401

Andrew.Brake@edwardjones.com