According to Scottrade Inc.’s sixth annual American Retirement Study, 51% reported starting their retirement savings in this age range, compared with 39% last year. In comparison, just 30% of Baby Boomers and 21% of Seniors started saving for retirement at 25 to 34 years of age.
The study also found the percentage of Gen Xers who reported having less than $25,000 saved for retirement continued its downward trend (53% in 2010, 45% in 2011 and 44% in 2012), while the number reporting retirement savings of $25,001 to $100,000 maintained upward momentum. In 2012, 20% said they have between $25,001 and $100,000 saved, compared with 17% in 2011 and 14% in 2010.
To aid their retirement savings goals, more Gen Xers hold a tax-deferred account today than a year ago and the majority (71%) reported saving some portion of their 2011 income for retirement. Even more (85%) plan to save some portion of this year’s earnings for retirement.
“With a retirement horizon spanning into the 2050s, Gen Xers have decades of income-earning years ahead of them,” said Derrick Brooks, Scottrade’s director of online investor solutions. “They are recognizing the need to save now and seizing the opportunity.”
The survey was commissioned by Scottrade and conducted online by Synovate with a nationally representative sample of 1,000 respondents from January 5 to 9, 2012.