“It is a pity that, as one gradually gains experience, one loses one’s-youth.” — Vincent van Gogh

Awhile back, I mentioned the Gen Y movement that Anya Kamenetz inspired with her book, Generation Debt. On Sunday, Paul J. Lim continued with thoughts on the young investor in his piece for The New York Times entitled: Youth is Wasted on the Generation Y Investor.

He cites a study from Hewitt Associates that recently found, “how the different generations are handling their employer-sponsored retirement accounts. Among its findings are these: Only 31 percent of Generation Y workers (those age 18 to 25) eligible to participate in a tax-deferred 401(k) retirement plan are doing so. By comparison, 63 percent of eligible Generation X workers (those age 26 to 41) are using these plans, while 72 percent of baby boomers (age 42 to 59) are doing so.”

He writes, “Retirement is probably the last thing on the minds of people in their 20’s, who are entering the work force with college loans and credit card debt in tow.”

Ieva M. Augstums of The Dallas Morning News reports, “More than three-quarters of Gen Y’s say day-to-day needs and more than half say lifestyle purchases are obstacles to retirement saving. Factor in credit card debt and student loans, and it can be even more difficult.”

“Keeping up with the Joneses has become more expensive,” said Lori Lucas, director of retirement research for Hewitt Associates. “What was not a surprise, but a little disheartening, is that 81 percent of this age group say they will support themselves in retirement through savings they will put away at a later date.”

“But time means money. And as defined contribution plans become increasingly central to retirement security, more responsibility is shifting to employees.” A dollar put a way at age 25 will be worth exponentially more than the money invested in your 30’s.

Starting young is easier said than done for Generation Y (or Generation Debt as dubbed by Kamenetz). The outlook seems dismal for this age group so what can be done to encourage them to save. Maybe more companies need to auto-enroll workers in 401(k) plans. Corporate plans should shift from an “opt in” to an “opt out” model for those who don’t want to participate. The thing I always learned about forced savings is that you don’t even miss the money and if you do miss it then you adjust your standard of living and live without a few things.

Less is more. Live within your means. I was in my thirties before I fully realized this and now I’m making up for lost time. There are few tomorrows the older you get. Make them start counting today.