Millennials and Gen X Shunning IRAs

Typically, tax season brings a flurry of interest in IRAs as a tax sheltered way of socking away a few extra bucks for retirement. This year, though, well fewer than half of Millennial and Gen X investors will contribute to IRAs compared with over 70% last year.

The sharp drop in interest in IRAs is attributable to economic insecurity. 32% said they were feeling too poor to contribute and 56% said they needed the money for everyday expenses or to pay down debt. 14% cited fears of market volatility and 12% blamed job uncertainty. “Given their economic fears, it is understandable why many younger investors might be unable or unwilling to fund all of their tax-advantaged accounts and are focusing primarily on their 401(k) during this tax season,” said a T. Rowe Price planner.

Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedInShare on StumbleUponEmail this to someoneShare on Tumblr

Tags: , ,
Categories: Recession Economy,Work

Leave a Reply

Your email address will not be published. Required fields are marked *

  • Categories

  • Archives

  • Cam’s Recent Media

  • Cam’s Recent Tweets