Scottrade Research Findings: Gen X Motivated to Save, Takes Action to Plan Retirement

Gen Xers are saving younger, saving more and acutely focused on retirement

ST. LOUIS, March 27, 2012 – The youngest of Generation X will celebrate their 30th birthdays this year, pushing this key demographic into their prime income earning years and establishing them as the benchmark for new retirement saving trends. Gen X showed this past year they are not only saving for their retirement, but they aren’t wasting any more time.

Drastically more Gen Xers (born 1967 to 1982, ages 29 to 44) reported this year than last that they started saving for retirement between the ages of 25 and 34, according to Scottrade, Inc.’s sixth annual American Retirement Study. This year, 51 percent reported starting their retirement savings in this age range, compared to 39 percent last year. This generation demonstrated they are learning from their elders to save earlier. Just 30 percent of Baby Boomers and 21 percent of Seniors started saving for retirement at 25 to 34 years of age.

The study also found the percentage of Gen Xers who reported having less than $25,000 saved for retirement continued its downward trend (53 percent in 2010, 45 percent in 2011 and 44 percent in 2012), while the number reporting retirement savings of $25,001 to $100,000 maintained upward momentum. In 2012, 20 percent said they have between $25,001 and $100,000 saved, compared to 17 percent in 2011 and 14 percent in 2010.

To aid their retirement savings goals, notably more Gen Xers hold a tax-deferred account today than a year ago and the majority, at 71 percent, reported saving some portion of their 2011 income for retirement. Even more, at 85 percent, plan to save some portion of this year’s earnings for retirement.

“With a retirement horizon spanning into the 2050s, Gen Xers have decades of income-earning years ahead of them,” said Derrick Brooks, Scottrade’s director of online investor solutions. “They are recognizing the need to save now and seizing the opportunity.”

To help them reach their retirement goals, Scottrade is committed to developing solutions so they can research, trade and monitor their investments in real-time, Brooks said. “Scottrade understands that self-directed investors and traders have their own investment strategies and utilize the tools we offer in individual ways, and we work hard to continue to be an ally for them.

“Through our branch office network, our online trading community, social media channels and usability testing, we are able to listen to our clients, gather their suggestions and continue to expand upon the features and functionalities of our online investing and trading tools,” Brooks said. “By developing new tools such as our mobile trading app and offering customizable account pages, clients can access the information they want – when they need it – to make informed trading decisions.”

Last week alone Scottrade rolled out two new updates to its trading website: a Quick Trade bar that enables clients to place trades as they navigate from page to page; and a Ratings and Reports tab, which is an at-a-glance view of research items, including S&P Rankings, Reuters Ratings and MarketEdge Opinion.

The company also continues to enhance its offering of investment vehicles beyond its trademark $7 online stock trades to include a variety of IRA types, mutual funds and exchange-traded funds to meet diverse investing strategies. In 2011, Scottrade rolled out a suite of retail banking products, including checking and savings accounts, certificates of deposit, and money market accounts affording the ability to easily move money and manage finances between banking and brokerage accounts accessed with a single login.

About the 2012 Scottrade American Retirement Survey
The survey was commissioned by Scottrade and conducted online by Synovate. Fielded with a nationally representative sample of 1,000 respondents between January 5-9, 2012, the survey examined attitudes, behaviors and trends related to retirement. All participants were at least 18 years of age and were involved in making investment decisions in their households. Margin of error for the overall poll is +/- 3.1 percent at 95 percent confidence. This is the sixth year in a row Scottrade commissioned a survey of Americans’ current viewpoints about retirement and retirement investing.

About Scottrade Financial Services, Inc.
Scottrade Financial Services, Inc., is the privately-held holding company for Scottrade, Inc., a leading online investing services firm; Scottrade Bank, a provider of online retail banking products and services; and FocusShares, LLC, a registered investment advisor and exchange-traded funds sponsor. Scottrade, Inc. was founded in 1980 to provide investors with a better way to invest and make their own trading decisions. Today, it has the largest branch network among online investing firms and provides education to help millions of investors invest for themselves. Scottrade Bank was formed in 2008 to provide banking products and services to Scottrade customers. In 2010, Scottrade Financial Services, Inc., acquired FocusShares, which launched the FocusTM Morningstar ETFs in March 2011. Scottrade Financial Services, Inc. is based in St. Louis, Mo. For more information, visit us at www.scottrade.com.

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Research Findings

Research Findings

Learn more about Scottrade’s yearly surveys to American investors to understand how they feel about investing, retirement and the economy.