Generations X and Y Saving More for Retirement than Boomers

Generations X and Y have embraced the concept of self-directed retirement savings more so than their parents and grandparents.  

A survey conducted by TD Ameritrade found that 85% of working 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.

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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

Americans Split on 2012 Financial Outlook

Eighteen percent of Americans say planning for retirement is an area they want to work on in 2012.

According to the COUNTRY Financial Security Index, 30% of respondents said 2012 will be better than 2011. However, almost an equal number said it will be worse (28%) or about the same (32%).

Other top financial priorities for 2012 include reducing debt (27%) and boosting savings (19%). When asked which national economic issue will most impact them, 28% cited the federal budget deficit and the level of government spending.

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The “Gen Y” age group (18-29) is ending 2011 with significantly more upbeat financial sentiments. Forty-one percent rate their overall level of financial security positively (up 20 points since the October index). Seventy-three percent are confident in their ability to pay debts (also up 20 points since the October index).

The COUNTRY Financial Security Index is a bi-monthly measure of Americans’ sentiments toward their overall financial security. It is an aggregate of various factors comprising financial security including savings and investments, financial planning, retirement, education and asset protection. The Index was created by COUNTRY Financial, and is compiled by Rasmussen Reports, LLC. It is based on a national telephone survey of at least 3,000 Americans.

To access the survey data in its entirety, visit http://www.countryfinancialsecurityindex.com  

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