CHICAGO, Aug. 1, 2012 /PRNewswire/ -- Young Americans are hoping for an early retirement. However, many have not taken the important first steps of knowing how much money they will need and starting to save, according to a report issued today by the BMO Retirement Institute, Broadening the Approach to Preparing for Retirement.

The report found that:

"There is an obvious dichotomy between what young people think about retirement and what they're actually doing to prepare for it," said Tina Di Vito, Head of the BMO Retirement Institute. "While it's encouraging that young adults appreciate the importance of retirement planning, there's clearly a disconnect between the concept and then putting the tangible pieces in place, such as determining how much money you'll need and starting to save. This is especially concerning given that so many expect to retire before the age of 60."

The report also outlined how important attitudes and role models are in helping young people become more proactive in preparing for retirement.

Behaviors and Attitudes Fall Short

The report found that behaviors and attitudes are strong predictors of financial preparedness for retirement. Educating young adults through practical hands-on general money-management experiences, such as budgeting, may help instill good financial habits and encourage them to seek information about saving for retirement.

The report revealed that the level of involvement in saving for retirement is relatively low in most young people. They are not spending enough time gathering information on retirement planning, attending seminars, consulting others on retirement planning, or thinking about how much they should be saving in order to secure their financial future.

"Having a general appreciation of how much money you'll need in retirement involves the important first step of visualizing what you want your retirement to look like," said Di Vito. "Only then can you develop an effective savings plan. This process takes time, research and self-reflection, and the attitude you have entering into it will largely determine your success."

Role Models are Key

Role models such as parents and other influential adults are critical to helping young people think differently about their financial future. The report found that many young people turn to family and friends to discuss retirement planning and then seek out information on their own. Consulting others appears to be the most effective, with 38 percent taking action as a result of these conversations. Meanwhile, retirement planning seminars appear to be the least effective at nudging young adults into action. Even with more than one-third (34 percent) attending these seminars, only 28 percent took action.

The rest is here:
BMO Retirement Institute Report: Young Americans Want to Retire Early, but Many Are Not Saving