Based on a survey of 800 "NextVestors," ages 25 to 34 with personal incomes averaging $30,000, the traits of the 40.5 million people who fit this demographic show they're more cautious about money than the spendthrift "Generation X" stereotype suggests.
Seventy-nine percent of NextVestors are saving for retirement (63%) or kids' education (43%). About 64% contribute regularly to employer retirement plans.
While 88% don't count on Social Security as a future source of income or subsidy, they do have a positive economic outlook. Most (83%) said they felt secure about their economic future; 80% believe their prospects are equal to or better than those of their parents. And 60% believe globalization of the economy will improve economic opportunities.
NextVestors have a two-to-one chance at having an in-home PC compared to average American households (69% vs. 35%). Many (42%) respondents have modems (vs. 16% of all households) and 29% (vs. 8% of all households) have Internet access.
Online, they do show a fair amount of investment action: 16% of NextVestors have sought articles or other information; 14% get stock quotes; and 10% track current investments. Only 4% surveyed have conducted transactions online.
Copyright August 1996 Crain Communications Inc.