Many young adults between the ages of 25 and 34 have unrealistic expectations about retirement, according to a report from Edward Jones, purposely released on Wednesday to coincide with National Save for Retirement Week.
Thirty-nine percent expect to be able to retire before the age of 60, yet 31% admit that saving for retirement is difficult, with 24% saying that low salaries are the reason.
Fifty-three percent said they’ll cope with pressures in retirement by cutting back on shopping, and another 45% said they simply won’t spend as much on home investments and repairs.
“Saving for retirement is a sobering concept for all generations,” said Clif Helbert, a principal with Edward Jones who specializes in retirement planning. “There is an obvious disconnect for the younger generations. They understand they have to save now in order to retire comfortably, but because of family obligations and lower salaries, they don’t think they can commit to a plan to save for retirement.
“What we don’t want to see is history repeating itself 20 to 30 years from now,” Helbert added. “The Baby Boomer generation is dealing with the repercussions of not properly preparing for retirement. The younger generations should learn from the Boomers’ mistakes and plan early to start saving.”