BALTIMORE, Feb. 5, 2018 /PRNewswire/ — T. Rowe Price has announced the results of the third installment of its Retirement Savings and Spending survey, revealing that 77 percent of Generation X retirement savers with 401(k)s view having financial peace of mind as a major financial objective, leading the 16 financial objectives scored in the survey. The survey asked respondents across all generations to categorize each financial objective as major, minor, or not an objective. Of the financial objectives cited as major, having financial peace of mind, maintaining an acceptable quality of life (cited by 70 percent), and saving for retirement in a 401(k) (65 percent) were the top three for Generation X.
Additional findings across all generations include:
More women than men cite financial peace of mind as a major objective. Seventy-five percent of all respondents view having financial peace of mind as a major objective, with 83 percent of women selecting it as a major objective compared with 71 percent of men. 401(k) contribution rates are trending upward. This is especially true of millennials (ages 18-35), 45 percent of whom said their expected contribution rate is now higher than their contribution rate in the last 12 months. For Generation X (ages 36-51) and baby boomers (age 52 or older), 36 percent and 30 percent, respectively, said they expect to increase their 401(k) contributions in the coming months. Employer match makes a difference. The majority of individuals determine their contribution rate based on their employer match, with 65 percent taking full advantage of the match.
The survey examined the attitudes and behaviors of 3,022 adults, focusing on Generation X’s financial objectives and attitudes toward financial advice.
“Those in Generation X are at a time in their lives when awareness and concern for their retirement savings is steadily increasing,” said Anne Coveney, senior manager of retirement thought leadership at T. Rowe Price. “This group is also balancing competing financial demands, with the majority of them indicating their households have numerous financial objectives. Fortunately, this generation has shown a desire for financial advice to help them reach their goals. They are also at a stage in their lives where there is time to adopt strategies that can make these goals more attainable. With the proper guidance and action, these savers can better position themselves for successful retirement outcomes.”
GENERATION X AND FINANCIAL OBJECTIVES
For the financial objectives