Scone: At least an iPod comes with instructions

The American Savings Education Council (the nonprofit arm of EBRI) and AARP have released a new report examining the retirement readiness of Gen X and Gen Y workers. The report makes all of the usual observations about these two groups -- among them, that they aren’t saving as much as they know they should, yet remain confident that they will ultimately achieve a secure retirement.

However, the report goes off the rails a bit when it not-so-subtly observes that the younger generations know more about operating an iPod than about saving for retirement. According to the report, 40% of workers age 19 to 39 say they are “very knowledgeable” about how to use an iPod, while just 15% say the same about both saving for retirement and how to invest outside of a workplace plan.

Okay, I admit I’m biased -- as a member of the demographic being studied, I feel the need to defend myself and my generation -- but let’s compare apples to apples here. Putting the complex considerations of investing effectively over the course of decades to prepare for an unfixed date in the future on the same plane as operating a gadget that -- in its tiniest model -- is slightly larger than a postage stamp is unfair and ridiculous.

First, as employees of all ages will tell you, saving for retirement doesn’t come with explicit written instructions, 24-7 tech support and a user-friendly interface like the iPod does.

Second, you only need to learn how to operate an iPod once, and then never again. The instructions never change, unlike the laws, plan designs and investment options surrounding retirement plans.

And third, if you’re using an iPod wrong, you’ll know -- it won’t work. Unfortunately, if employees save ineffectively for retirement, the consequences may not be known until it’s too late.

Perhaps, ASEC and AARP should help employers and lawmakers increase the ease of use and understanding of retirement plans for employees, rather than give the impression they’re shaking their heads, thinking, “Silly youngsters -- can't even navigate saving for retirement.”

Because in truth, no one of any age is saving for retirement well, made plain by paltry overall savings rates as well as a nugget in the survey that says younger workers learned their financial know-how from guess who? Their parents.