Getting a car, finding a date and starting a career are common concerns for your average twenty-something.
But today's 20-year-olds, often called Generation Y or the Millennials, are also busy thinking about retirement.
Young American workers are not expecting Social Security or traditional corporate pensions to provide for their retirement. Their parents' lack of retirement readiness is also increasing their awareness -- and acting as a wake-up call.
"My dad would love to retire at 65, but he's putting it off because of the swings in the aviation business. I'm concerned," said JoAnne Farrell, a 29-year-old Web manager at a design firm in San Francisco.
Retirement readiness is decreasing with time. According to a new study by State Street Global Advisors, 2012 is the first year that assets invested in pension plans top those invested in 401k retirement savings plans. At the same time, the study finds that members of Generation X, or people in their late 30s and 40s, are not nearly as prepared for retirement as their older counterparts, the baby boomers.
"Clearly it is the young who have the understanding that 'somebody else isn't worried about this for me. I have to do this,'" said Dallas Salisbury, the CEO of the Employee Benefit Research Institute.
It is up to 20-somethings to fund their own retirements. The trouble is, they're not quite sure how to do it. (Are you saving enough for retirement? Find out with this MSN Money calculator.)
Elena Nikolova, a 23-year-old associate for an energy consultancy in Washington, D.C., has a 401k plan available through her employer, but has not made a contribution yet.
"It's intimidating. First of all, I don't know what to invest in, and I'm not even sure this money is going to grow. I feel like I need to hire somebody to do it for me, which defeats the whole purpose," she said.
Jenny Stein, a 27-year-old senior tax accountant for Ernst & Young, shares similar concerns.
"I have a 401k with Fidelity through work, but it's confusing. People say you need to be aggressive with your asset classes when you're young. I don't know what that means," she said.
Even when employers don't offer 401k plans, young workers are seeking out other investment options. Stein's boyfriend, Matt DeTore, who works for a physical therapy office on Long Island, set up an individual retirement account on his own through a local bank. He's 26 years old. (Use MSN Money's 401k calculator to see if your 401k is likely to provide enough for retirement.)
"After 2008, we've created a generation of people who want to put away for their future," said Kristi Mitchem, the head of global defined contribution at State Street Global Advisors.
