According to a study released Tuesday by MFS Investment Management, baby boomers are definitely feeling the heat in the markets and are worrying about the feasibility of retirement, while Gen X/Y investors are both saving and investing more, indicative of higher confidence levels. However, despite their greater enthusiasm for their financial futures, the younger generations still may not be doing enough to ensure future financial stability.
The MFS Investing Sentiment Survey revealed that one of boomers' concerns included a lower level of home equity than that of Gen X/Y or 65+ homeowners. Non-retired boomers also agreed, by a margin of 59%, with the statement, "I'm more concerned than ever about being able to retire when I thought I would." Even if they can retire, they're worried about the quality of that retirement, with 50% saying they've lowered their expectations about what life will be like once they finally get the proverbial gold watch.
On the other hand, Gen X/Y folks are putting more into IRAs and 401(k)s than they did last year—42% compared with only 30%—and 51% said they are saving more in non-retirement accounts. And more (47%) indicated they would feel comfortable at some point investing in the stock market, up from 39% in 2010.