Cecily
O'Connor
RedwoodAge.com
When it comes to retirement planning, boomers are asking the same question as other generations: Where's the money going to come from?
But - like the others - they have their own answer.
| Source
of Funds |
Total | Gen Y | Gen X | Boomers | Seniors |
| Savings & Investments | 50% | 60% | 50% | 40% | 29% |
| Pension | 20% | 20% | 10% | 10% | 25% |
| Social Security | 25% | 10% | 20% | 25% | 34% |
While current retirees rely on a mix of pensions, personal savings and Social Security, younger generations are putting more stock into their own investments to help plan for the long term, according to a survey of 4,000 adults by Charles Schwab.
As they are with their age, boomers are somewhere in between.
That's not to say that Generation Y, made up of adults aged 21 to 31, has it all figured out. When they are compared to adults in the seniors (63 to 83), boomers (44 to 62) and Generation X (32 to 43), it seems each age group is wrestling with how to achieve financial self reliance at a time when their expectations regarding work and family relationships are changing.
With the average retirement age now in the early 60's, most Americans are planning for upwards of 30 years, even though some boomers lack faith in the guidance they're receiving.
Sandwiched
Generations
"Our current retirement systems and networks aren't set up to meet
their expectations as they alternate between periods of work and leisure, and
they may find themselves at the center of a complex set of relationships where
they care for parents, as well as siblings," said Ken Dychtwald, president
and chief executive officer at Age Wave, a boomer think tank that helped sponsor
the survey.
At a time when many boomers are supporting their elderly parents, younger generations are starting to worry about whether they'll need to help other family members who haven't planned for a secure retirement. While four in 10 of all adults surveyed expect to support their parents, one in four worry that they will have to help siblings, too. Gen Y is the age group that is most concerned.
Younger age groups also feel a stronger desire to leave an inheritance. When asked if it's important to pass on a monetary inheritance to the next generation, 14 percent of Gen X and 13 percent of Gen Y said they "strongly agree" compared to 11 percent of boomers and 6 percent of seniors.
Still, at least $500,000 will be required to live comfortably in retirement, according to the survey's median response. That's twice the median net worth of today's boomer. However, by "living within my means" and "investing wisely" most adults expect to achieve a financially secure retirement.
When it comes to getting help and guidance to manage assets, most generations said they don't know who to trust, will all respondents giving financial advisors a C+ grade, employers a C, brokerage a D+ and insurance companies a D.
