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Dispatches

Millennials More Optimistic About Retirement Than Older Generations

A survey by the Transamerica Center for Retirement Studies looked at how three generations differ in their attitudes toward retirement. 

by Anine Sus | May 2019

A survey by the Transamerica Center for Retirement Studies looked at how three generations differ in their attitudes toward retirement. A group of 5,923 U.S. residents who are 18 years or older, working full-time or part-time at a for-profit company were divided up into three generational groups: Millennial (born 1979 to 2000); Generation X (born 1965 to 1978); and Baby Boomer (born 1946 to 1964). The breakdown of respondents by generation was: 2,156 Millennials; 1,476 Generation X workers; and 1,477 Baby Boomers.

The majority (72%) look forward to retirement. More Baby Boomer respondents feel this way than those in the other two generations. The average worker plans on living until they are 90 years old, with the percentage planning to live to 100 years or older higher among Millennials than the other two groups. The study’s authors note, “The retirement landscape is ever-evolving as a result of increases in longevity, the dynamic nature of the workforce and employment trends, the transformation of employer-sponsored retirement benefits, and potential reforms to Social Security benefits.”

Among those who participated in the study, the median age at which workers began saving for retirement was 24 years old for Millennials, 30 years old for Generation X workers and 35 years old for Baby Boomers. Over 70% of each generation is saving for retirement using an employer-sponsored 401(k) plan or an alternative individual retirement account. Despite perceived generational divides, all three generations are afraid that they will outlive their savings while in retirement. For this reason, 54% of workers who responded plan to work past age 65, and some do not see themselves retiring at all.

On the topic of the Great Recession of 2007 to 2009, two in five respondents say their investments weren’t impacted or have entirely recovered. Only 8% believe their finances will never be restored, while 14% haven’t started recovering and 37% feel their investments are somewhat recovered. Only 9% of respondents in the Baby Boomer group believe their standard of living will “increase when they retire.” Eighteen percent of Generation X respondents think their standard of living will improve, while 31% in the Millennial group—the most optimistic generation in this case—are expecting an improvement.

Source: “What Is ‘Retirement’? Three Generations Prepare for Older Age,” by Catherine Collinson, Patti Rowey and Heidi Cho; Transamerica Center for Retirement Studies, April 2019.

Discussion

Frank James from Alabama posted over 7 years ago:

I am sick and tired of Cloonan's annoying popups when I log on.


John Braun from Florida posted over 7 years ago:

Ditto Frank


Jim from IL posted over 7 years ago:

When it first was published, I purchased copies of Investing at Level 3" as gifts ('cause I'd earlier bought into Mr. Cloonan's approach); so, even if removal of that pop-up can't/won't be universal, could it at least be granted to those who've already bought the product?


Craig B from Wisconsin posted over 7 years ago:

I sent AAII a complaint email some months ago and I do not seem to have it happen as often or worse yet, as persistently as I navigate through the site.


Paul E from MO posted over 7 years ago:

Agree with Frank James about Cloonan's pop-ups. You call yourself a non-profit, but operate just as a profit org. like Motley Fools does. The more income you get, the higher you all's salaries. What's the difference? Pad your own pockets...The American Way.


RCE from RI posted over 7 years ago:

I've purchased his book, am a paid up member and find the pop-up ad annoying. Please get rid of it. Thank you for your consideration.


Don Miller from IL posted over 7 years ago:

I,too, strongly object to REPEATED popups advertising Mr.Cloonan's approach to investing. It is extremely annoying. If Mr. Cloonan wishes to advertise his product, he should do it elsewhere and not on the website of AAII, a non profit organization. An occasional article about Mr. Cloonan's approach is fine, but a repeated popup is not. I have been an AAII member for over 40 years and this almost made me cancel my membership.


carmine from ca posted over 7 years ago:

The Cloonan Pop Up is annoying and unprofessional.


Michael from North Carolina posted over 7 years ago:

I saw an article, recently, on MarketWatch indicating that Millennials are not putting into there 401K due to climate change. The thinking being they won't be around to use the retirement money. I guess it depends on who is asked the question.


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