Gen X And Gen Y Showing The Right Retirement Savings Chromosomes
|PR Newswire Association LLC|
For 2013, the percentage of combined assets controlled by Gen X and Gen Y (34.2%) is still below that of Baby Boomers (60.2%), but that gap is gradually closing as well. At year-end 2012, Gen X/Gen Y held 31.9% of defined contribution assets compared to Baby Boomers at 60%.
Both Genders Favoring Age-Based Strategies
Investments in asset allocation funds more than doubled since 2007 and are at an all-time high at
Women continue to close the gap in retirement plan account balances as well as in savings rates compared to those of their male counterparts. According to the Q4 2013 data, the average deferral rate for female participants was 5.30%, up from 5.25% in Q3 of 2013. Male participants are saving at 5.67% on average, up from 5.60% in the third quarter. While the average account balance for women still trails that of men by 37.4% compared to 38.25% at the end of 2012, it continues to improve. The current level marks a significant improvement over the highest recorded gap level of 40.5% in the fourth quarter of 2008.
"We see many positive trends in our data overall, and it's particularly gratifying to see that women and Gen X/Gen Y savers are taking such positive action steps," says
The vast majority (78%) of asset allocation investments for females are in age-based strategies compared to 73% at year-end 2012. Females have just 22% of assets invested in risk-based investment options. More and more men are also favoring age-based strategies vs. risk-based strategies, at 58% vs. 42% respectively, a trend common to both genders.
Importantly, two out of every three
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