Boomers, Millennials, Gen Xers not ready for retirement, survey finds
Investors are still strongly influenced by the 2007-2008 Financial Crisis and Baby Boomers, Millennials and Gen Xers are falling short of their retirement goals, according to a survey from Baltimore-based investment management firm Legg Mason. Legg Mason’s 2017 Global Investment Survey found many Baby Boomers haven’t met their retirement goals. The majority of Boomers Legg Mason surveyed have yet to achieve their retirement goals.
Legg Mason says the future financial environment will likely be quite different than what Boomers are experiencing. According to Legg Mason, that means it won’t be easy for Millennials and Gen Xers to make money and, “the secular decline in interest rates markets that defined much of the boomer’s investment years and the easy monetary policies that followed the GFC have largely run their course.”
The Legg Mason study does say Millennials and Gen Xers still have time on their side, but they need to act soon when it comes to preparing for retirement. That means developing long-term investment plans and sticking with them. Legg Mason says Millennials and Gen Xers will need to stray away from asset allocation models and instead become more outcome-oriented in their choices. Legg Mason says, “this will mean accepting increased risk and embracing broad diversification, including exposure to unconstrained, multi-asset and alternative products.”