When’s the best time to plan for retirement? Now, say young investors who tend to seek retirement advice more than help with any other financial issue.
Young investors appear to appreciate the importance retirement planning and are more likely to seek retirement advice than help with any other financial issue, according to a recent Millionaire Corner study of Main Street Americans.
“The economic downturn has had a profound effect on the financial behaviors of young investors,” said Catherine McBreen, President of Millionaire Corner. “Young Main Street adults are worried about their level of household debt, inability to save and retirement security, and these worries are driving them to seek retirement advice above all other forms of financial advice.”
The young investors, those ages 44 and younger, represent members of generation X and Y and come from households with investable assets of $100,000 up to $1 million. They express a high level of concern about financial security in their golden years, and this worry likely explains their focus on retirement advice.
More than two-thirds (67 percent) of these young investors say they are concerned about having enough money set aside for retirement, ranking retirement security as their most pressing concern, and nearly 60 percent say they worry about being able to retire when they want to, according to our first-quarter research on investors’ attitudes and behaviors. The study also found that young Main Street investors are equally worried about paying college costs for their children and rate “maintaining my current financial position” as another significant concern.
How do these concerns translate into action? According to our third-quarter study on advisor relationships, young Main Street Americans are making retirement planning a top priority. More than one-third (36 percent) of young investors say their have received advice on retirement planning from their primary advisor. Another 12 percent have received retirement advice from other professionals, and 30 percent plan to seek the advice in the future.
Young investors are less likely to work with their primary advisor on selecting individual stocks and bonds (32 percent), creating an investment plan (30 percent), diversifying their portfolio (28 percent), creating a written financial plan, developing tax-advantaged strategies (21 percent) or alternative investment strategies (15 percent). For now, at least, the need for retirement advice is dominant.