Young Adults Expect to Be Better Prepared for Retirement than Their Parents

February 17, 2005 ( - A new poll by Fidelity Investments indicates that younger people are confident that they will be more prepared for retirement than their parents.

The poll of 1,800 adults shows that almost 75% of Americans feel that they will be more financially ready for retirement than their parents are or will be, according to a press release from the company. Young adults are the most confident, with those between 21 and 34 years ago more confident than 35 and 54.

Its not just talk. Seventy-one percent of younger Americans started saving before they were 30, while only 54% of those between 35 and 54 did so, the survey found.

Besides these somewhat optimistic figures, the use of individual retirement accounts (IRA) is still somewhat low. Sixty percent of Americans currently do not use a tax-advantaged IRA, according to the survey. Of younger adults, 43% said they just haven’t gotten around to doing it, due to either lack of time or patience. For those who don’t have them between the ages of 35 and 54, the most commonly cited reason for not doing so is a lack of funds.


class=”bodytext”> “The reality is that the cost of retirement continues to increase, thanks to rising health care costs, longer life spans and inflation,” said president of Fidelity Personal Investments Jeff Carney in a press release. “IRAs can play a critical role in helping Americans boost their savings from 401(k)s or other accounts, for a better chance to save the money they’ll need to live the retirement they want. The key is to make saving for retirement automatic and more affordable while taking the guesswork out of selecting an appropriate investment.”

class=”bodytext”> The survey was conducted in January over the phone with 1,800 financial decision-makers, according to Fidelity.