Gen Yers apparently don’t need to “get real” when it comes to retirement—a survey released earlier this week suggests many may already be “real,” at least when compared to their elders.
A study of 1,000 American adults released Wednesday by TIAA-CREF, titled the 2015 Lifetime Income Survey, found that, when it comes to retirement planning, Gen Yers (those between age 18 and 34) seemingly are more conservative than older generations in their retirement outlook, with only 56 percent saying they are counting on Social Security to provide income in their retirement. In contrast, 76 percent of those between ages 35 and 44 and 73 percent of those between ages 45 and 54 indicated that was the case.
According to the study, 34 percent of the respondents said if they could choose one primary goal for their retirement plan, it would be to ensure that their savings are safe, no matter what happens in the market—a marked increase from older generations. Only 16 percent of Americans ages 35 to 44 and 22 percent of Americans ages 45 to 54 reported the same.
The survey also found that Gen Yers tend to take a pragmatic view about the length of time their retirement may last: 34 percent say they plan to accrue retirement savings to allow them to live comfortably for more than 25 years, compared to only 26 percent of respondents overall. However—and here’s the particularly disturbing, though not necessarily surprising data point—31 percent aren’t currently saving any money for retirement, due in part to financial challenges such as student loans or jobs that don’t offer retirement plans.
Here’s one take on the findings, this from Teresa Hassara, executive vice president and head of Institutional Business at TIAA-CREF …
“Many in Gen Y came of age during the Great Recession, which helped shape their attitudes and outlook[s] on their own finances. They face higher student-loan debt and fewer prospects for full-time employment with benefits than previous generations, making it harder to save enough for a comfortable retirement. The gap between the need for financial security and having the will and the means to achieve it may well impact this generation for decades to come.”
All points well worth considering the next time you re-evaluate your benefits-communication strategy.Twitter It!