Survey: 45 percent of Des Moines millennials worried about outliving retirement savings
BUSINESS RECORD STAFF Dec 15, 2016 | 4:29 pm
2 min read time
409 wordsAll Latest News, Banking and FinanceDespite a rebound in the U.S. stock market, an increase in hiring and an improvement in home sale prices, many Des Moines millennials are fearful about having enough money in retirement. According to the 2016 Investor Mindset Report, a nationwide study sponsored by Thrivent Mutual Funds, 45 percent of Des Moines millennials are concerned about running out of money in retirement, compared to the national average of 32 percent.
Among Des Moines respondents in all age groups, nearly 40 percent of Des Moines respondents noted running out of money in retirement as a top concern, compared to the national average of 32 percent, with some variance by generation. Baby boomers – who are closest to retirement age – were more confident, with 31 percent of Des Moines baby boomer respondents citing that as their top concern, compared to 27 percent nationally.
“Millennials often have a difficult time taking a long-term view with uncertainty around health care costs, pensions and defined benefit plans,” said David Royal, president of Thrivent Mutual Funds. “That uncertainty can lead them to fear they won’t be able to save enough for retirement. However, despite those fears, people should be proactive determining their retirement goals and establishing an investment strategy, in order to feel more comfortable and confident about their retirement plan.”
ORC International, a global business intelligence company, conducted the survey among 3,400 respondents ages 25-64 in late July and early August.
The report also found that 71 percent of Gen Xers and 62 percent of baby boomers have what they consider to be an aggressive investment strategy, while 45 percent of millennials consider themselves to have a more balanced approach. Based on gender, 69 percent of men say they have an aggressive investment strategy, compared to women (53 percent).
While running out of money in retirement is a significant concern for Des Moines millennials, Royal offers advice on investment strategies for them to consider as they plan for retirement.
“It’s important for young investors to take both short-term and long-term goals into account when looking at their investment focus,” he said. “While short-term goals like paying off student loans are important, don’t forget about long-term goals, like saving for retirement. For example, a Roth IRA allows investors to take advantage of tax-free growth of their investment portfolio to help plan for enough financial resources in the future.”
Millennials should also take advantage of company matches on 401(k) and other qualified retirement plans, Royal said.
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