Data and Research

Generations at Different Stages of Retirement Planning

Although older Millennials feel most confident in their retirement preparedness, they are also planning big ticket spending, a survey finds.

By Javier Simon | January 26, 2017
Page 1 of 2 View Full Article

When it comes to retirement readiness, those farthest away from this milestone appear the most hopeful, a new survey suggests.

According to a new survey by New York Life, 66% of “Maturing Millennials” ages 30 to 35 believe they will be in better financial shape for retirement throughout the new year, compared to 46% of Generation X (ages 36 to 51), and 33% of Baby Boomers (52 to 70).

This trend of optimism against age is reflected across different variables such as overall financial security, opportunity for career growth and spending projections, the survey found.

When asked if they believe their family will be more financially secure and better prepared for the unexpected in 2017, 71% of Maturing Millennials agreed. Only 52% of Gen Xers and 36% of Baby Boomers said the same.

“It’s a tale of three cities for America’s generations as they head into 2017,” says Mark Madgett, senior vice president and head of Agency Department, New York Life. “The stark contrast between Maturing Millennials and their Gen X counterparts, who aren’t all that much older, is equally promising for Millennials and worrying for Generation X. A source of tremendous concern is the Baby Boomers, who are clearly showing the strains of heading into retirement without the kind of financial planning many sorely need.”

However, while Millennials are most confident about their financial future, they also plan to spend more than their counterpart generations despite major challenges like student loan debt, poverty, and unemployment.

Millennials plans to spend more (64%) on important purchases such as home improvements, appliances, and professional wardrobe. Only 40% of Gen Xers and 23% of Baby Boomers expect to do the same. More than half (55%) of Maturing Millennials even plan to boost “fun” spending such as vacations in 2017. Only 35% of Gen Xers and 22% of Boomers expect the same luxuries.

NEXT: More emphasis needed on retirement planning