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RETIREMENT PLAN INVESTOR

Use your plan ID (available on your account statement) to determine which employer-sponsored retirement plan website to use:

IF YOUR PLAN ID BEGINS WITH IRK, BRK, 1, 2 OR 754

Visit americanfunds.com/retire

IF YOUR PLAN ID BEGINS WITH 34 OR 135

Visit myretirement.americanfunds.com

Categories
Retirement Planning
Retirement fears: Learn from these boomers

A survey of Baby Boomers and retired Americans uncovers key investing advice for the younger millennial generation about saving for retirement


Despite widespread concerns that Americans will outlive their money, baby boomers (people born between 1946 and 1964) and retired investors are feeling optimistic about retirement, according to a survey conducted by Capital Group. The key to such a positive outlook? Saving early.


“While everyone has a different aspiration for retirement, the survey uncovered a certain wisdom of experience in baby boomers and retired investors’ investment approaches, and key lessons and insights for younger generations,” said Pete Thatch, director of wealth management at Capital Group.


Capital Group surveyed more than 1,000 people ages 50 and older with at least $100,000 in investable assets. The findings show that more than half of those investors started saving for retirement before they reached 30 years old. About a third started before age 25.


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Starting to save early for retirement was a priority for baby boomers and retired investors, but that’s not good enough anymore, older investors say. With younger generations facing such retirement challenges as overwhelming student loan debt, threats to the future of Social Security, and longevity, young people should start saving before age 25, according to 64% of the survey respondents.


Those getting a later start might have to save aggressively to catch up. Assuming they have no money set aside, the oldest of the Millennial generation will have to save $2,000 a month for 32 years, and their money would have to earn 5% a year, in order to accumulate a $1.8 million retirement nest egg, according to an analysis by USA Today.


“The key lesson (older investors) would share with their children and grandchildren is that it’s never too early to start saving for retirement,” the survey said.


To read the complete survey, download the Wisdom of Experience report.



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Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.