Your generation’s retirement: Unique challenges, common concerns
Hip hop or classic rock? Apps or newsprint?
In a whole host of ways, each generation tends to look at life a little differently. In much the same way, when it comes to retirement planning, different stages of life present very different viewpoints and challenges.
Generally speaking, there are about 6 generations living in America today. Of these, about 3 or 4 are active in the workplace starting with the Millennial Generation (ages 14-34). Generation X (ages 35-49) is next and the influential Baby Boom generation (50-64) is at the tail end pondering what will be its next steps in life.
When it comes to saving for retirement, the older generation is likely striving to maximize their savings during those remaining working years. But if you’re a younger worker, in today’s economy, your challenge may be finding the extra cash – and the discipline – to begin investing for a future need that’s still a long way off. But for younger workers, building your own savings is more crucial than ever. According to Voya Retirement Research Institute’s report called “Retirement Across the Ages,” nearly half of workers over age 50 today can count on pension savings of some kind. However, only about 27% of younger workers expect to do so. The availability of a traditional pension certainly impacts a worker’s perception of retirement security and whether or not they choose to save in a voluntary retirement account like a 401(k).
While each generation faces distinct challenges, they also share some troubling similarities. Namely, the Voya Retirement Research Institute report notes that most workers “regardless of age, feel that at least something gets in the way of their ability to save for retirement.”
What Gets in the Way of Saving?
Voya Retirement Research Institute® Report (2015). Retirement across the ages
From too little income to too much debt, these obstacles affect all the generations to varying degrees – and most workers are simply not saving enough to ensure a secure retirement. This is why, regardless of your age or which generational cohort you belong to, there are simple steps you can begin to take today to help your chances of reaching a comfortable and secure retirement.
Here are some tips to help you prepare for retirement depending what generation you’re part of.
Generation Y (Roughly to age 34)
Generation X (About ages 35-49)
Baby Boomers (About ages 50-64)
Even though the year you were born says a lot about what your retirement saving challenges are, what the next best steps might be for you, or how you feel about saving and retirement in general, one thing doesn’t change. The sooner you take action, begin to save, and keep up with your plan the better you will likely be when you reach retirement. While savers from different generations may not agree on musical styles or how to keep up with the news, there’s one thing we can all agree on – that is our desire to achieve a safe and secure retirement.
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