A new study finds 55% of all investors use a 401(k) plan as their primary means of saving for retirement.
But 74% of GenXers are saving for retirement mainly through a 401(k), according to the study by Eaton Vance Corp., Boston.
The company's survey of investors found about 25% identified either a pension or self-directed brokerage plan as their primary retirement vehicle.
Many investors remain unaware of the retirement reforms made under the Pension Protection Act of 2006, the study found. 56% were unaware of reforms, which include automatic enrollment of new employees in 401(k) plans and quicker vesting.
44% of boomers and 46% of Generation Xers were aware of the changes, compared to 34% of seniors (over age 65).
A generation gap was also apparent in asset preferences among investors. 64% of GenXers preferred assets that primarily provide capital growth, vs. 57% of boomers and 32% of seniors. Among seniors, 35% preferred investments providing mixed growth and income, while 23% preferred investments with purely an income goal.
34% of seniors and 31% of boomers chose stocks as they investment they prefer to generate income, while 34% of GenXers preferred real estate.
On asset allocation, 39% of all investors said they had more assets in stocks than any other category of investment. Yet only 14% said they expected to favor stocks once they retired.
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