Study: Young Adults Concerned About Retirement

  • August 4, 2010
Younger adults are already concerned about having enough money to see them through retirement, according to research from Ipsos Marketing.

Likely in response to these retirement concerns, the research also suggests that this generation would be particularly receptive to alternative contribution options within employer sponsored 401(k) plans.

The survey reveals that seven in 10 adults ages 25-34 (71%) have under $50,000 in investable assets overall, and among those who have a 401(k), nine in ten have under $50,000 invested in it.

With an expectation that they will be retired for 23 years on average, four in ten young adults (37%) think it is unlikely that they will even be able to cover basic monthly expenses throughout retirement. Additionally, just one quarter (26%) feels that they have enough information and resources to help them plan for retirement.

The research also finds that young adults are interested in alternative approaches to investing for retirement. 

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With the potential for regulation of annuity products shifting to allow greater portability, annuities are becoming a more appropriate option for 401(k) investing. Additionally, low-cost exchange traded funds (ETFs) are increasing in consideration as an alternative investment option beyond traditional money market, equity and bond mutual fund options.

All of these factors have the potential to shift how people plan for retirement and designate contributions within their 401(k) plans.--Tanya Irwin

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