Shifting Responsibilities

As reliance on employers and the government grows more uncertain, more responsibility is shifting to the individual. The further each generation is from retirement, the more strongly its members believe that retirement security will be based on financial self-reliance instead of government dependence.

 

Schwab's Rethinking Retirement Survey polled representatives of Generation Y (ages 13-31), Generation X (ages 32-43), Baby Boomers (ages 44-62) and the Silent Generation (ages 63-83). Here's what we heard:

 

With each succeeding generation, the survey reveals a pronounced mind-shift from dependence on entitlements toward financial self-reliance.
Q: Approximately what percentage of your retirement funds will come from each of the following sources? Total Gen Y Gen X Baby Boomers Silent Generation
Myself and/or my spouse, through personal savings, investments, inheritance, IRAs, 401(k), 403(b), etc.

50%

 60% 50% 40% 29%
My employer, through a pension 20% 20% 10% 10% 25%
The government, through Social Security 25% 10% 20% 25% 34%

 

The older you are, the more important Social Security is to a secure retirement, the survey shows.
Q: How important is Social Security to you personally in having a financially secure retirement? Total Gen Y Gen X Baby Boomers Silent Generation
Absolutely essential 24% 11% 22% 31% 39%
Very important 31% 35% 30% 25% 31%
Somewhat important 36% 40% 38% 37% 23%
Not at all important 10% 14% 10% 7% 6%

 

A third of Gen Y individuals surveyed do not expect to receive any Social Security benefits.
Q: What level of Social Security benefits do you expect to receive throughout retirement? Total Gen Y Gen X Baby Boomers Silent Generation
Better benefits 10% 9% 8% 11% 9%
Same benefits 19% 13% 12% 23% 57%
Reduced benefits 48% 44% 55% 52% 31%
I'm not expecting to receive any Social Security 23% 34% 24% 14% 3%

 

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