Millennials appear to understand how to use fixed income as part of investing for retirement better than older generations, according to a new survey by BNY Mellon Investment Management.

The survey, which polled more than 2,000 American adults about the appropriate time to add fixed income to an investment portfolio, found 45 per cent of baby boomers said they didn’t know, compared with 36 per cent of millennials. Notably, more millennials (43 per cent) said they currently have fixed income in their portfolios compared to baby boomers (32 per cent).

Read: How is fixed income faring amid renewed market volatility?

Most of the survey respondents said they fundamentally misunderstood how fixed income can be used. Some 80 per cent of baby boomers said fixed income is only meant to be used for retirement planning, while 70 per cent of millennials and generation X said the same. Three-quarters (76 per cent) of baby boomers said they believe all bonds carry the same level of risk, while 65 per cent of millennials agreed.

“This research demonstrates that, regardless of age, there remains confusion around fixed income investing, as well as the important role it can play in long-term financial planning,” said Liz Young, director of market strategy for BNY Mellon Investment Management, in a press release.

Read: Pension funds’ fixed income allocations losing ground in growth markets: report

Copyright © 2021 Transcontinental Media G.P. Originally published on

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