Retirement continues to be a priority for Baby Boomers, but new research by Scottrade, Inc., found that 73 percent of the Sandwich Generation are either “very stressed” or “somewhat stressed” about their current financial situation.
Many Baby Boomers aren’t just saving for retirement. According to the sixth annual Scottrade American Investor Survey, nearly one in four Baby Boomers (born between 1945 and 1966) reported they are financially supporting an adult child or grandchildren and 9 percent of those surveyed said they hold a college or education savings account.
Seventy-two percent of those surveyed named saving for retirement as a top priority, but 11 percent said they also save for their own or a family member’s education expenses, 36 percent save for an emergency fund and 21 percent save to reduce their debt.
Nearly 40 percent of Baby Boomers reported that they worry about not having enough money to pay the bills and 23 percent said making their mortgage or rent payments contributes to their stress.
“This research indicates that many Baby Boomers are balancing between saving for their own retirement and growing family demands, including the living and educational expenses of their children and grandchildren,” said Kim Wells, Scottrade’s executive director of product development and chief marketing officer. “These cumulative financial pressures mean they must get the most out of every dollar they invest and as a result, many are spending more time with their investment accounts than they were just a year ago.”
Nearly 50 percent of Baby Boomers surveyed said they check their investment accounts at least once a week, and 33 percent report they are checking their accounts more frequently than they did a year ago.
Despite their stress, the majority of Baby Boomer investors reported they plan to keep their investments at about the same level over the next year. Two-thirds of respondents said the economy led them to invest more conservatively or with less money. According to the survey, money withheld from the market by these investors was instead spent paying for everyday expenses like food, gas and paying down debt.
The study was commissioned by Scottrade and conducted online with members of Survey Sampling Inc.’s SurveySpot consumer panel. Fielded with a nationally representative sample of 1,186 respondents between July 20 and August 1, 2011, the study examined attitudes, behaviors and trends related to investing.
Scottrade is an online investment firm that enables customers to learn about online trading tools, stock market research and how to buy stocks online.