Fewer than half (46%) of Gen X consumers surveyed selected retirement as the most important reason to save. In a recent LIMRA study, “Sowing the Seeds for Retirement: Gen X and Gen Y Markets,” a larger proportion of Gen Y consumers ranked saving for vacation or travel (41%) than retirement (31%) as the most important reason to save.
LIMRA notes this is a cause for concern given that most of Gen X and Gen Y consumers will have to rely primarily on their savings to fund their years in retirement—only 16% have defined benefit (DB) plan accounts.
Only 43% of Gen X women and 27% of Gen Y women listed retirement as one of their top three reasons for saving. According to LIMRA, since women are likely to live longer and often make lower wages than their male counterparts, it is even more critical that they start saving early so that they have enough saved to ensure their financial security throughout retirement.
The survey was based on 854 consumers ages 32 to 47 (Gen X) and 698 consumers ages 20 to 31 (Gen Y) currently working for pay.
The survey report is available to LIMRA members. More information about LIMRA is at http://www.limra.com.