Three in four younger adults do not have employer-sponsored retirement accounts and most do not have strong role models for building retirement savings, according to the study. That’s because their baby boomer parents, ages 55 to 64, have a median 401(k) balance of $177,000, which translates to about $7,112 per year in retirement, while 45% in this same age cohort have zero retirement savings.
Yet the survey revealed that young adults are falsely confident about their parents’ retirement readiness and few worry about becoming full-time caregivers for their parents as they age. According to the study’s finding:
• 61% of Gen Z and 62% of millennials are confident their parents will be able to live independently,
• Less than 20% believe their parents will need financial help from them, and
• Less than 20% envision their parents moving in with them to take care of them physically or for financial reasons.
“The findings underscore the need for employers to provide a broad array of financial wellness programs to their employees that will help them navigate challenges and opportunities,” said Lorna Sabbia, the head of Retirement and Personal Wealth Solutions at Bank of America.