Younger adults in the 25 to 34 year old age range are very worried about their financial future. The Middletown Press article “Younger adults fret about future” by Cara Baruzzi explains the results of a new survey. Ipsos, a market research company, says that almost three-fourths of younger adults have less than $50,000 saved for retirement. Of those who do have 401k plans, 90% don’t have near that amount saved yet. Many of these young adults showed an interest in annuities, with 83% of those surveyed saying they would look into the investment product for their futures. Of those already in a 401k plan at work, 36% said they’d research putting all of part of that money into an annuity.
With half of the young adults surveyed worried that they won’t have enough money to live how they’d like in retirement, their interest to compare annuities and some low-cost funds that are exchange traded shows a possible growing aversion to risk. They have seen their parents and grandparents lose a lot in the recent decline in the stock market and they want to ensure that their money will be safe into the future. Most will spend 25 years or so in retirement. They don’t have much faith in Social Security, so many worry that they won’t be able to meet even their basic expenses throughout retirement. Younger adults need more educational information and resources to help plan for their future retirement.