Ameriprise Study: Generation X Confident They're Saving, Investing Enough for Retirement
June 24 2015 - 7:00AM
Business Wire
Overwhelming majority of Gen Xers started
saving and investing early – health, wealth and work are top
priorities heading into retirement
Ameriprise Financial (NYSE:AMP), today released the results of
the new Retirement 2.0SM study, revealing that the majority of Gen
Xers (76%) report proactively planning for their retirement, with
eight in 10 (79%) respondents currently saving through a 401(k)
plan, and seven in 10 (69%) investing in an IRA or similar
account.
The Retirement 2.0 study, which surveyed more than 1,500
Americans between the ages of 35-50 with at least $100,000 in
investable assets, took a comprehensive look at how Gen X is
approaching retirement. The study also explored how they have
invested and saved for this major milestone; and how they expect to
spend their retirement years. Encouragingly, the study found that
Gen Xers began planning for retirement early and started saving at
the average age of 26. They anticipate relying on their 401(k)
accounts (42%) or IRAs (29%) as their main sources of income during
retirement, while pensions (14%) and Social Security (5%) are
expected to take a back seat as primary sources of retirement
funding.
“Having grown up in a different era than their parents and
seeing how the landscape has changed, Gen Xers aren’t counting on
pensions or Social Security to fund their retirement,” says Marcy
Keckler, vice president of Financial Advice Strategy at Ameriprise.
"Instead, they're taking matters into their own hands. They are
setting aside money and investing now, while time is still on their
side and they’re entering their peak earning years."
Willfully Working in RetirementWith retirement on the
horizon, Gen X does not plan to say goodbye to work anytime soon.
Instead, they plan to continue working in retirement, but in a way
that is more meaningful than just earning a paycheck. According to
Retirement 2.0, nearly three quarters (73%) of Gen Xers plan to
work after they retire; however, the vast majority (90%) see
themselves working in a different capacity. While most Gen Xers
(91%) admit they like their current profession well enough, it
doesn’t mean they are completely satisfied with their career. As
they transition into the next chapter, Gen Xers will be looking for
employment that carries less stress, and is more rewarding. While
finances are important to this generation, mental and social
interaction will be the driving forces behind their decision to
stay in the workplace post-retirement.
Gen X: Top 5 Preferences for Transitioning
to a New Profession in Retirement
1. Working part-time only (53%)2. Working as a consultant
(27%)3. Working in my own business (20%)4. Working in a home-based
business (16%)5. Working in a seasonal position (9%)
Redefining Retirement with New ExpectationsFor Gen X,
it’s out with the old perceptions of retirement and in with a new
vision of what retirement should look like. An overwhelming
majority (90%) of Gen Xers see their own retirement taking a
different path than the “traditional” approach. Instead of living
in a retirement community or moving somewhere warm, Gen Xers are
looking forward to a retirement that is more physically active and
intellectually stimulating. Travel and relaxation are at the top of
the retirement to-do list, while half of Gen Xers (50%) say
exercise will be a big priority and nearly a third (36%) see
themselves taking on meaningful volunteer work when they
retire.
Potential Retirement Speedbumps and SetbacksGeneration X
is confident about their ability to save for retirement, but they
maintain some worries as they consider their future. The majority
of Gen Xers (75%) share concerns over the rising cost of healthcare
and 63 percent fear they could be burdened by the cost of long-term
care. They also have concerns about not being able to rely on funds
from Social Security or Medicare. But, even with these potential
obstacles, most Gen Xers feel confident they are on track to meet
their financial goals for retirement including paying off major
debts (86%) and saving enough to cover all of their basic needs
(96%).
“The new reality is that Gen Xers are planning to reinvent
retirement. They don’t have an on-off switch in terms of leaving
the workforce and instead anticipate a gradual evolution into this
new phase of life, which really sets this generation apart,” says
Keckler. “Working with a financial advisor to develop a personal
plan is an excellent approach for Gen Xers, and provides
reassurance as they balance their needs today with their future
financial security in retirement.”
For more information about the Retirement 2.0 study, please
visit our research page at ameriprise.com/GenXretirement
About the surveyThe Retirement 2.0 study was created by
Ameriprise Financial utilizing survey responses from 1,518
Americans ages 35 to 50 with investable assets of at least
$100,000. The online survey was commissioned by Ameriprise
Financial, Inc., and conducted by Artemis Strategy Group from
February 27 – March 15, 2015.
About Artemis Strategy GroupArtemis Strategy Group
(www.Artemissg.com) is a communications strategy research firm
specializing in brand positioning, thought leadership and policy
issues.
About Ameriprise FinancialAt Ameriprise Financial, we
have been helping people feel confident about their financial
future for more than 120 years. With extensive asset management,
advisory and insurance capabilities and a nationwide network of
approximately 10,000 financial advisors, we have the strength and
expertise to serve the full range of individual and institutional
investors' financial needs. For more information, or to find an
Ameriprise financial advisor, visit ameriprise.com.
For further information and detail about the Retirement 2.0
study including verification of data that may not be published as
part of this report, please contact Ameriprise Financial.
Investment advisory products and services are made available
through Ameriprise Financial Services, Inc., a registered
investment adviser.
Ameriprise Financial Services, Inc. Member FINRA and SIPC.
© 2015 Ameriprise Financial, Inc. All rights reserved.
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version on businesswire.com: http://www.businesswire.com/news/home/20150624005034/en/
Ameriprise Financial, Inc.Jennifer Johnson,
612-671-7188Media RelationsJennifer.3.Johnson@ampf.com
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