YOUNG AMERICANS SAVING EARLIER FOR FUTURE.

• Position: Brief Article

Contrary to conventional wisdom, young adults are far more savings-conscious than their elders were at their age and are preparing for their retirements earlier and with unmatched zeal. A survey for Lincoln Financial Group and Money magazine by Roper Starch Worldwide Inc. shows that 64% of Americans 18 to 34 are saving for retirement. Of these, the average age for starting is 23--about 13 years earlier than those who are now 65 and older began.

In addition, 18- to 34-year-olds are significantly more likely to believe that it is important to sacrifice immediate pleasures--such as vacations and dining out--to achieve long-term goals. Contrary to stereotypes, the survey shows that people tend to become less willing to make sacrifices as they age.

The survey also found a high degree of financial contentment among those who are retired already. Approximately 79% of retirees, most of whom are 65 or older, reported they are financially comfortable. Retirees on average are managing on 50% of their pre-retirement household income--less than the two-thirds to three-fourths of what most financial advisers recommend today. "At least part of the reason that retirees are getting by so well is that Medicare is picking up the bulk of their health care costs," notes Fleming Meeks, assistant managing editor at Money. "And many retirees have relatively generous health insurance programs from their former employers, to boot. But future generations may not have that same kind of security."

The survey contained some disturbing findings for Americans' future wellbeing. Twenty-seven percent of full-time employed people aren't saving anything for retirement. In households where income is less than $30,000, average monthly savings are $200, of which just $50 is allocated to retirement. Even in households where income is between $50,000 and $75,000, average monthly savings are a mere $350, and just 65% of that--$227.50--is earmarked for retirement. The median monthly savings for full-time employed people currently saving is $300, with $150 designated for retirement.

Important as the roles of age and attitude are in shaping savings behavior, key life circumstances can be more powerful. Life events such as divorce, parenthood, and job change tend to have...