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Retirement Planning > Saving for Retirement

Survey finds savings motivation gap between Gen X, Gen Y

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Almost half of the Gen X generation cites retirement among the top 10 important reasons for saving, but less than one-third of the Gen Y generation does, a new report reveals.

LIMRA, Windsor, Conn., discloses this finding in a study, “Sowing the Seeds for Retirement: Gen X and Gen Y Markets.”

The survey shows that 46 percent of Gen X respondents cite retirement as one of the top 10 important reasons for saving. By comparison, just 31 percent of Gen Y respondents identify retirement—behind vacation and travel, which 41 percent of Gen Y respondents (vs. 38 percent of Gen X respondents) cite as a key reason for saving.

Additionally, the report observes, only 43 percent of Gen X women and 27 percent of Gen Y women list retirement as one of their reasons for savings.

Among the 8 other important reasons for saving, Gen X and Gen Y respondents identify the following:

Home improvements/repairs (29% Gen X vs. 22 percent Gen Y)

Education costs (26 percent vs. 20 percent)

Large household purchases (23 percent vs. 24 percent)

Medical/health insurance (22 percent vs. 21 percent)

Buy a car or other vehicle (19 percent vs. 24 percent)

Buy/build a house or condo (11 percent vs. 25 percent)

Taxes (10 percent vs. 7 percent)

Starting a family (8 percent vs. 25 percent)