Young workers in the US Aim to save more for retirement than the previous generation | Prachatai

A survey of 3,213 savings in the US reveals that the new generation of Gen Z workers are more focused on saving for retirement than the previous generation. including hoping to retire earlier than the previous generation

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Aug. 15, 2022 From the 2022 BlackRock Read on Retirement report, based on a survey of 305 corporate health or retirement plan providers, 1,308 corporate savers, 1,300 self-employed savers. and 300 retirees, totaling 3,213 from March to April 2022. About seven in 10 Gen Z respondents (69 percent) said they were saving for retirement, but nearly Three-quarters (72 percent) said they would save less for retirement. If faced with other big goals

  • Gen Z is someone born from 1997 (1997) onwards.
  • Gen Y is someone born during the year. 1980-1997 (1980-1997)
  • Gen X is someone born during the year. 1965-1979 (1964-1979)
  • Baby Boomers are those born during the year. 1946-1964 (1946-1964)

Gen Z workers said they would set aside 14 percent of their income for retirement, a higher percentage than Gen Y, Gen X and Baby Boomers who said they would set aside their income for retirement. 12 percent

Additionally, Gen Z respondents expect them to have a retirement age of 63.6 years, almost two years less than the Baby Boomers average of 65.9 years.

Gen Z respondents also think they can earn less for retirement than their peers, with more than a third saying they need less than $250,000 to live comfortably after retirement. By contrast, nearly half of Baby Boomers said they needed at least $1-3 million in savings.

But the financial and banking media GOBankingRates Asked whether Gen Z money savers who answered these questionnaires, "Is there a realistic view of what they will see in retirement?" GOBankingRates It previously stated that Synchrony Bank, headquartered in Stamford. Connecticut It has issued a recommendation that Americans in their 30s should save 1-2 times their annual retirement income, and those in their 40s should have 3-4 times their annual retirement income. , People aged 50 and over should have savings of 6-7 times their annual income for retirement. And those aged 60 and over should have savings of 8-10 times their annual income for retirement.

The latest data from the US Bureau of Labor Statistics (BLS) released on July 19, 2022, shows that the median income of workers in the United States is $1,041 per week. or about $54,000 a year

According to the Synchrony Bank formula, working people in their 60s should have savings from $432,000-540,000 for retirement — which is roughly twice the amount Gen Z thinks they need to save, according to the 2022 BlackRock Read on Retirement report. The Synchrony Bank savings formula is more conservative than the others. already used

GOBankingRates report Pointed out that one thing most everyone agrees is that saving for retirement is becoming more challenging due to the impact of COVID-19. and the inflation rate skyrocketed In the BlackRock survey, the majority of respondents of all ages said the current pandemic and inflation had affected their attitudes toward retirement savings (90 percent Gen Z, 82 percent Gen Y). , 79 percent of Gen X and 75 percent of Boomers).

The 2022 BlackRock Read on Retirement
Gen Z Is Saving More for Retirement, But Are Their Financial Goals Realistic? (Vance Cariaga, GOBankingRates, 27 July 2022)