Young workers really do think about saving for retirement.[@@]
Researchers at the Transamerica Center for Retirement Studies, Los Angeles, have published data supporting that conclusion in a report on a survey of “echo boomers,” or U.S. adults born between 1979 and 1986.
Although young workers are interested in retirement savings, employers may have to offer more retirement planning education and advice to get those young workers to participate in employer-sponsored retirement plans, according to the Transamerica researchers who wrote the report.
Echo boomers seem to be as likely as older workers to have talked to supervisors or human resources departments about retirement benefits, and 93% of the echo boomers surveyed said they think an employee-funded retirement plan is an important benefit, the researchers write.
Moreover, 88% of the echo boomers acknowledge that they should know more about retirement investing, and 71% want more information and advice from their company about how to save for their retirement.
But echo boomers lag behind other generations when it comes to saving for retirement.
Just 37% of echo boomers with access to an employee-funded retirement plan participate. In comparison, 75% of Gen Xers, or workers born between 1965 and 1978, and 85% of baby boomers, or workers born between 1946 and 1964, participate in employer-sponsored plans.
Transamerica researchers found similar results for retirement savings arrangements set up outside the workplace.
Transamerica points out that workers who start saving for retirement early have more time to accumulate interest and investment earnings on their retirement assets.