Gen-X'ers ahead for retirement

Generation X’ers are well ahead of other generations when it comes to saving for retirement, according to a new study from financial brokerage firm Edward Jones. The study shows that each generation has begun to save at a younger age. Sixty-eight percent of the work force between the ages of 25 and 34 say they have already started saving for their retirement, yet only 34 percent of those over 65 say they began saving before they were 34 years old.

Note: The survey of 1,008 US adults was carried out by Opinion Research Corporation on June 28. The margin of error was +/- three percent.

“It’s encouraging that younger generations are beginning to save earlier,” said Kent Borsch, an Edward Jones financial advisor in Bonsall. “No doubt this is partly due to a growing recognition that company pensions are becoming a thing of the past and the long-term solvency of Social Security is still in question.”

Despite each generation starting to save earlier than the previous one, 69 percent of the youngest respondents (ages 18-24) say they haven’t yet started making provisions for retirement. The survey also shows that a higher education is highly correlated with retirement planning. Eighty-five percent of college graduates have begun to save for their retirement, while only 62 percent of people with a Gradate Efficiency Diploma have put money aside.

“The cost of retirement depends on where you live, your health, desired lifestyle and financial assets, and with so many variables, the best strategy is to start saving early,” Borsch said. “Gen-X’ers are clearly learning from their parents’ mistakes and are facing the future now, rather than making plans at the last minute.”

The Edward Jones interactive Web site is located at http://www.edwardjones.com.