Many parents regularly encourage their children to put a portion of their money aside for a rainy day and for their golden years, but it’s the parents who aren’t heeding their own advice, a new survey finds.
Baby boomers’ children in the 30s and above appear to be saving more on a regular basis than their parents who are now reaching retirement age.
A TD Ameritrade survey, as reported by Reuters, found that only 23 percent of boomers questioned said they were completely confident they will reach their savings goals by the time they hit age 65. Almost half of boomers, those born between 1946 and 1964, said they were somewhat confident. Boomers are reaching retirement age at a rate of around 10,000 a day.
But while 85 percent of boomers have retirement accounts – an IRA or a 401k or 403b retirement plan, – only 16 percent fund them regularly if they have both. By contrast, a quarter of “Gen Y” children — born between 1977 and 1989 — said they were funding both their 401k or 403b and their IRAs, and 23 percent of “Gen Xers” — born between 1965 and 1967 — said they were funding both.
The survey questioned 1,509 adults.
Of course, some boomers might argue that their adult children are able to save because many of them have moved back home.