Gen Y Looking for Financial Independence, Not Traditional Retirement


Affluent Gen Y investors are eschewing defined contribution plans in favor of online brokerages, according to a survey released Tuesday by Hearts & Wallets, a consumer financial research company. The reason, the survey found, is that they value financial independence more than a traditional retirement that puts an expiration date on their career.

Almost three-quarters of Gen Y respondents with at least $100,000 in household assets said they have an online brokerage account, compared with two-thirds who have a defined contribution plan. Hearts & Wallets surveyed more than 5,000 households for the report. Read more…

Affluent Gen Y Prefers Online Brokerage Accounts over DC Plans

Short-Term Goals, Financial Independence Trump Traditional Retirement and Tax-Deferred Savings

(Hingham, MA) – Gen Y[1]’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→

Different Ideas of Retirement Require Different Messages


Think people are either pre- or post-retirement? Think again. Both include a spectrum of lifestyles and financial situations, research says, that need specific messaging and support from plan sponsors.

A study about retirement funding and household finance from Hearts & Wallets LLC, a financial research company that studies consumer savings and investing behaviors, finds fewer than half of current retirees use personal assets for retirement income. “It’s not possible to understand retirees as a homogenous group,” says Laura Varas, partner at Hearts & Wallets. “Some have pensions, others simply haven’t saved enough to produce substantial income, and still others, of all wealth levels, are successfully funding their lifestyles with different types of savings or annuities.”

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