Nearly 70 percent of Millennials have not begun saving nor contemplated a strategy for retirement even as 66 percent report they expect to retire fully by 65.
The finding, among others, was uncovered as part of a recent survey conducted by Thestreet and GfK Roper Public Affairs & Corporate Communications.
Millennials had a front row seat for the global financial crisis with many watching their parents’ nest eggs wither if not become completely decimated. One would think this could spur energetic and creative retirement planning among the generational cohort in order to avoid the fate of their Boomer parents but the survey found that Millennials are planning on Social Security as a source of income in retirement.
That is problematic. Social Security, economists agree, should be viewed as an element within an overall retirement portfolio rather than the main source of income. Interestingly enough, the survey found that Millennials view Social Security as a system with systematic sustainability issues for the long term, yet, more than half of them reported that they will count on it as a source of income in retirement.
The survey found that employee-sponsored plans play the biggest role in both Millennial and Boomer retirement plans with more than 60 percent of both groups contributing to them. That finding seems to indicate a mindset prevalent in both generations that signals a need for encouragement, incentives and the participation of an outside party in retirement planning in order for workers to be engaged.
The survey was conducted in June of this year with telephone interviews among 1,000 adult Americans.