America's Financially Savvy Young Adults Put Retirement Planning at Top of Their List

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Recent survey shows half of young investors actively contribute to a retirement account, with many more planning to begin investing in near future.

Today's 18-24 year olds, more commonly referred to as 'Generation Y', are surprisingly well aware of the importance of retirement planning. With Social Security projected to all but run out by the time today's young adults plan to retire, many seem to be taking this financial matter into their own hands. In fact, the findings of a new survey show that this younger set of investors has put retirement planning at the top of their lists.

According to a report from a recent YOUNG MONEY magazine survey, entitled "Legacy in the Making," fifty percent (50%) of young investors are currently saving for retirement and an additional thirty percent (30%) are planning to begin investing in the near future. The nationwide survey of 18-24 year olds gauged the financial attitudes and behaviors of three groups of young adults: a) those who identify themselves as being interested in investing; b) those who identify themselves as being interested in entrepreneurship; and c) a random sample of young adults. They were surveyed on a variety of personal finance issues including debt, assets and their financial habits and goals.

"This is a very promising statistic," noted Rebecca Stiehl, president and chief executive of InCharge® Education Foundation, a national nonprofit organization specializing in personal finance education and research and publisher of YOUNG MONEY. "There are endless ways that young adults can choose to spend their paychecks. But if half of young investors are already putting something away for retirement, even if just a small amount right now, they are setting themselves up to be in a much more comfortable position down the road."

According to the survey, America's young investors are far more interested in saving for their retirement (32%) than in saving for a house or a car (7%), saving for college (3%) or paying off debts (1.4%). Interestingly, the women surveyed were even more focused on retirement planning than their male counterparts. Of those who said retirement was their number one goal, fifty-six percent (56%) were women, while only forty-four percent (44%) were men.

The online survey, which included 1,000 respondents, also found that about half of financially savvy young adults follow a budget, a helpful tool for a group that brings home an average of $45,000 per year, according to the survey.

The experts at YOUNG MONEY magazine offer a variety of tools and calculators on their Web site (http://www.youngmoney.com) to help soon-to-be and recent college grads see how their small investments in a retirement plan can positively multiply over time, just as they can see how their unsecured debts can negatively grow over time. A variety of financial calculators are available at http://www.youngmoney.com/calculators.

In addition to this "Legacy in the Making" survey focused on active young adult investors, YOUNG MONEY magazine surveyed two additional sub-segments: those interested in starting their own businesses and a more general group on personal finance attitudes. The surveys were administered by independent research organization Amplitude Research in late 2006 on behalf of YOUNG MONEY. The results of these surveys are expected to be released in the coming months. To receive the complete version of YOUNG MONEY's "Legacy in the Making" survey, please email your request to mediarelations @ incharge.org.

YOUNG MONEY is a bi-monthly magazine focused on young adult financial issues and distributed at college campuses nationwide. YOUNG MONEY magazine reaches more than 750,000 college students on 124 campuses in the United States. To learn more, visit http://www.youngmoney.com.

Headquartered in Orlando, Florida, InCharge® Institute of America, Inc., is a national nonprofit organization with affiliates specializing in personal finance education and credit counseling. InCharge® Education Foundation, Inc., publishes YOUNG MONEY® magazine and MILITARY MONEY® magazine and offers basic financial management education to clients and the general public. InCharge® Debt Solutions provides professional credit counseling and financial education services to consumers and is a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA). For additional information, visit http://www.incharge.org.

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Jacquie Tremblay
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