Good Morning,
Attached is the updated “By the Numbers” piece from MFS. The statistics that I highlighted this week deal with the client education of Millennials and individuals approaching retirement.
“A greater percentage of Millennials have all of their pre-tax retirement money invested in cash and bonds (20%) than those that have all of their pre-tax retirement money invested in stocks (19%). 2,593 Millennials (ages 20-36 in 2017) were surveyed in the 4th quarter 2017” (source: Transamerica Retirement Survey).
“A 65-year old American male in 2018 is expected to live another 19.2 years (to 84.2 years old), an increase of 5 years in the last 40 years. A 65-year old American female in 2018 is expected to live another 21.6 years (to 86.6 years old), an increase of 3 years in the last 40 years” (source: Social Security Administration).
I found these facts interesting because they are quite relevant to one another despite their differing subjects. This suggests that the long term investment horizon of younger generations is expanding and the ability to take on risk early in your working years is ample. Our ability to educate clients on the long term path to retirement savings will be a value add throughout a client’s investable time horizon.
Thanks,
Pete
Peter Malone, CFA
Research Analyst
Direct: 617.226.0030
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square
Suite 500
Boston, MA 02109