The youngest investors-those of Generation Y-have lowered their expectations of retirement the most in recent months, even though they have the longest time to save, according to an MFS survey.
When asked if they had lowered their expectations of life in retirement over the past few years, 59% of the the Generation Y group, those 18 to 30 years of age, said they had. This compares to 44% who agreed with that statement just four months earlier.
This group also had the highest percentage with a negative view of retirement, followed by the 31- to 45-year-old group comprising Generation X, which increased from 50% with a negative view in June to 54% in October. Baby boomers, ages 46 to 64, increased their negative outlook from 45% to 52%.
Of those 65 and over, 42% said they lowered their expectation in October, compared to 36% in June.
MFS, an investment management firm based in Boston, surveyed 929 individuals with at least $100,000 in household investable assets for the MFS Investing Sentiment Survey.
"The youthful optimism we would like to believe this generation possesses has been stymied by a decade of economic challenges, market volatility and prolonged unemployment," said William Finnegan, senior management director and director of U.S. retail marketing for MFS.
"Financial advisors need to find a way to ignite the interest of today's younger investors and establish relationships that can help Gen Y overcome short-term fears for the sake of long-term financial security," he said.
-Karen DeMasters