Because people are living longer, healthier lives, the Wells Fargo Investment Institute has suggested different ways that Millennials, Generation X and Baby Boomers can successfully save for retirement.
However, among all age groups, the most frequently cited retirement fear is outliving savings.
Both groups have saved or are on track to save $700,000 or less; however, Boomers think that is adequate savings, while Gen Xers do not.
By comparison, the majority of mutual fund investing for Baby Boomers is outside of an employer-sponsored retirement plan, Investment Company Institute data shows.
However, 82% of Millennials say their financial planning needs improvement.
However, 20% said they do not understand the process for withdrawing money from their 401(k) in retirement, according to a Charles Schwab survey.
They also value financial planning more than a bonus.
More than one-quarter of Millennials have more than $100,000 in retirement savings, with an average of 30 to 35 years before retirement, compared to 75% of Boomers with more than $100,000 in savings and an average of only three years before retirement.
Sixty-five percent have not budgeted for unforeseen health-related expenses.
However, 45% said they do not know how to select a retirement income product, according to a survey by fixed income annuity provider Annexus.
However, researchers say their outcome could possibly improve, given the fact that they still have a long time horizon to save, the markets could deliver strong returns and the government could save Social Security.
A study shows consumers might not understand health savings accounts as well as they believe.
A recent survey found that across generations, investors are almost equally concerned that their returns won’t secure adequate retirement savings.
Baby Boomers are adopting better financial habits, but Millennials may be overconfident in theirs, a study by Allianz finds.