20-Somethings Lack Retirement Confidence

September 6, 2011 (PLANSPONSOR.com) - The PNC Financial Independence Survey, which sought insights into the financial mindset of 20-somethings within Generation Y, found only 18% are confident they will have enough money to live comfortably when they are ready to retire.

A PNC Financial Services Group press release said 26% of 22-23 year-olds feel optimistic about their personal financial future, and 20% are confident about having enough money for a comfortable retirement. Only 14% of their older peers, at ages 28-29, agree on both points.  

In total, 23% of respondents describe themselves as “totally financially independent.” It increases with age, but starts small at 5% for ages 20-21 then 25% for ages 24-25 and 34% for ages 28-29.  

Forty percent of the total relies on two or more sources of income. This includes part-time jobs (57%), full-time jobs (28%), plus help from mom and/or dad (21%) – 48% for ages 20-21 and 7% for ages 28-29. They also rate parents as their top source of information about financial matters.  

Half (46%) rate themselves as behind expectations for personal financial success, including 52% for ages 28-29. Meanwhile, 26% overall feel they are right on target and 25% are ahead.  

The survey was conducted online within the United States in July 2011 among a nationwide cross section of 2,000 adults in the previously mentioned age group.