(Hingham, MA) – Gen Y’s savings goals drive their preference for liquid investments, reflected in a higher use of online brokerage accounts over defined contribution (DC) plans, according to a new study by Hearts & Wallets, LLC, the preeminent financial research resource for understanding consumer savings and investing needs and behaviors. Gen Y’s investment preferences stem from a desire for financial independence over a traditional leisure retirement, making retirement savings accounts less appealing.
74 percent of Affluent Gen Yers have assets in an online brokerage account versus 67 percent who have assets in a defined contribution plan. Affluent Gen Yers – those with more than $100,000 in household assets – are alone among working age segments in being more likely to invest assets in an online brokerage account than a defined contribution plan. The penalty-free access to capital and far greater investment choices of online brokerage accounts attract Gen Yers, who remain long-term commitment phobic. Read More→