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Asset Preservation Advisors


State: GA

APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

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Generation X And Y Are Savers, But What About Gen Z?

Unlike Generation X and Y, Gen Z is showing signs of "nest egg naivety." Find out more.

| BY Adriana Reyneri

Generation X and Y are saving for retirement, but the younger Generation Z demonstrates “nest egg naivety,” according to a recent survey from TD Ameritrade Holding Corp.

Most members of Gen X (59 percent) and Gen Y (56 percent) make regular, automatic contributions to retirement savings accounts and, in this respect, outshine baby boomers. Less than half of working boomers (46 percent) are making regular, automatic contributions to their retirement plans.

Generation X and Y not only appear more disciplined in their retirement savings habits, but they also began saving at a younger age than boomers. On average, both Gen X and Gen Y investors began saving for retirement in their mid-to late twenties. Boomers began, on average, when they were nearly 10 years older at the age of 35, according to the survey.

“Gen X and Y have accepted the reality of the past few years, and rather than being discouraged, they are using what they’ve witnessed to their advantage by saving earlier and regularly,” Carrie Braxdale, managing director of investor services for TD Ameritrade, Inc., said in a statement. “The hope is that tomorrow’s investors, Gen Z, follow suit.”

At this point in their lives, members of generation Z - teens and young adults currently ages 13 to 22 - appear to have a different outlook on retirement savings than their parents, according to the TD Ameritrade survey.  Nearly 40 percent of Gen Z respondents believe they will receive an inheritance and don’t need to worry about saving for retirement, but only 16 percent of parents indicate their Gen Z children will be inheriting money. Less than half (43 percent) of Gen Z children agree that it’s never too soon to start saving for retirement, compared to 71 percent of parents.

Gen Z appears to have a better appreciation for the importance of saving in general. More than half (56 percent) has a savings account, and 82 percent reports talking with their parents about the important of saving money. More than two-thirds (67 percent) say they’ve discussed the importance of saving for college.

“The good news is that Gen Z is starting off with a good understanding of the importance of saving,” Braxdale said. “But that doesn’t mean they should wait to become more educated on proper long-term savings habits. We encourage parents to talk to kids specifically about retirement savings to ensure they understand the importance of getting a head start and taking advantage of the power of compounding.”

Any members of generation X, Y or Z in your life?