Adults aged fewer than 34 years have their eyes set on retiring at age 61, but they are not taking the necessary steps to plan for early retirement, according to new research from St. Louis, MO-based Edward Jones and global decision intelligence company Morning Consult.
“Despite this earlier age, emerging adults, known as GenNext for being the next generation of workers, heads of households, consumers and investors, haven’t started planning for retirement just yet,” the authors noted.
Simply put, the so-called GenNext has other financial priorities at this stage of life, including planning for a family and taking care of everyday expenses, according to the report.
At the same time, however, Edward Jones advisers indicated that more than 40% of their younger adult clients are “thriving” (42%) and actually are in a more favorable position regarding their financial stability than people of the same age a decade ago.
“We know from our research with emerging adults ages 18 to 34 that they want to be comfortable or have enough money to have a meaningful life, but they aren’t concerned with financial accumulation or career in the same way,” said Julia Bartak, an Edward Jones financial adviser in the Kansas City area.
But only 12% of those surveyed said they discuss their finances with a financial adviser, and one reason for the finding may be a simple one, according to Edward Jones. Sixty-eight percent of members of the generation “don’t think they have enough income or savings for professional financial advice, despite being the most educated generation in history, with one in three having some college education and access to information,” the company said.
