Workers with the most time to prepare for retirement are the most stressed about their abilility to adequately save between now and their golden years, according to the most recent Merrill Edge report.

Gen Xers and millennials were more likely to anticipate saving shortfalls than were baby boomers and those already retired.

The survey examined savers with $50,000 to $250,000 in investable assets. Among the cohort, 74 percent of Gen Xers and 67 percent of millennials are predicting financial stress in retirement, given how much they are saving now.

But 59 percent of current retirees surveyed say they are not stressed over finances, and 73 percent say they will have enough to live on through retirement, compared to 57 percent of non-retirees.

Those counter-intuitive figures are instructive, says Aron Levine, head of Merrill Edge.

“It’s natural to be more concerned about an immediate issue versus something that’s well down the road,” reasoned Levine, in a video release accompanying the study’s results. “That’s why the latest results surprised us.”

He speculated that younger savers and pre-retirees might be more anxious because they will have to rely on their own savings and investments at greater rates than retirees, more of whom have guaranteed income streams from defined benefit plans.

Today’s savers should take note that fewer retirees are suffering anxiety in retirement. “Younger Americans can learn from their experience—that preparation pays off,” he said.

Four in 10 retirees said they invested outside of a workplace retirement account in order to maximize retirement assets, while only 24 percent of non-retirees either do, or are able to do the same.

About 63 percent of the retirees surveyed contributed to a workplace savings account, while only 57 percent of non-retirees said they are doing so.

Less than one-quarter of pre-retirees are working with a financial advisor, while 38 percent of retirees said they utilized formal advice in preparing for retirement.

About half of workers non retired said they plan on working at least part time into retirement, while only 20 percent of retirees said they are, or plan on working in retirement.

Predictably, more millennials are turning to technology to plan for retirement—27 percent said they use websites or apps to manage funds, compared to 16 percent of Gen Xers, 11 percent of baby boomers, and 5 percent of retirees.

Instant Insights /

Millennials more stressed over future retirement than retirees

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