Call it generational rebellion at its finest: It seems all the gloomy retirement forecasting for boomers has been inspiring their kids to save more. Workers in Gen X and Gen Y are both starting retirement savings earlier and more likely to make automatic contributions than members of the boomer generation, finds a new survey.
"Gen X and Y have accepted the reality of the past few years, and rather than being discouraged, they are using what they've witnessed to their advantage by saving earlier and regularly," said Carrie Braxdale, managing director of investor services for TD Ameritrade, which conducted the survey.
On average, members of Gen X and Gen Y (roughly, those born between 1965 and 1990) say they started saving for retirement in their mid- to late-20s. That's nearly a decade earlier than your average boomer, who started saving for retirement around age 35.
And nearly 60 percent of Gen X and Gen Y make regular, automatic contributions to retirement savings accounts, compared with 46 percent of non-retired boomers.
"The hope is that tomorrow's investors, Gen Z, follow suit as they near retirement," said Braxdale. Gen Z? Apparently that's what we're calling the generation born in the 1990s and early 2000s, now in their early teens through early 20s.
Understandably, most of the Gen Z members surveyed were more focused on saving for college than retirement. They also seem to put a lot of faith in Social Security - only 35 percent believe they won't be able to count on it when they retire - and in family money. Nearly 40 percent believe they will have an inheritance and therefore don't need to worry about saving, compared with just 16 percent of parents who reported the same thing. Ah, the ignorance of youth ...
Wednesday Quick Hits:
- Can boomers make a living temping? Smart Money magazine looks at how older adults can find, get and make a living with freelance/temp/consulting gigs.
- Vitamins for aging sperm. A diet high in zinc, folate and vitamins C and E is associated with improved sperm DNA quality in middle-age and older men, researchers say. Men over 44 who consumed the highest amounts of these micronutrients "had sperm with a similar amount of DNA damage as the sperm of younger men," said study author Andy Wyrobek. The finding comes in the wake of a study last week linking DNA damage in older fathers' sperm to genetic defects in children.
Photo: Take A Pix Media/Blend Images/Corbis