If you’re like the majority of Americans aged 29-49 – the so-called Generation X – your thoughts about your financial futures are bleak, and your retirement planning has been spotty or non-existent at best.
This was the lead sentence for a press release announcing a new retirement study.
A study released yesterday by the Siena College Research Institute for eRollover.com, studied more than 1,000 U.S. residents. Respondents between the ages of 29-49 were asked about their current financial situation, their savings, investments, retirement expectations and their plans to achieve those goals.
It revealed a generation with goals at odds with their strategies to achieve them, and behaviors inconsistent with their retirement dreams.
They acknowledge that over the past six months, just 41 percent have put aside any money beyond what their employer may have contributed to a retirement plan, yet largely have done very little to save or plan for retirement themselves, the data indicates. Further, fully seven in ten believe that Social Security could be bankrupt before their turn to draw from it, and even more can’t foresee how they will be able to retire at all.
Some of the initial findings:
- Despite the end of the recession in 2009, 83 percent say they are worse off today than a year ago. There is room for optimism, though. Thirty six percent believe they’ll be better off a year from now; 13 percent believe they’ll be worse off. The rest see no change ahead or answered that they don’t know.
- More than half of those surveyed do not keep a monthly budget.
- Fewer than one in eight has an emergency savings account, a 401k and a financial advisor.
- Only 15 percent have incomes greater than their expenses.
- Though only 50 percent of respondents had a savings account with at least $1,000 in it, 55 percent believe they will be able to retire by age 70.
- Only 11 percent are “very confident” they have all the information they need to plan for retirement, and that they will be able to maintain their current standard of living when they retire.