A survey released Tuesday tried to put a price tag on young investors’ financial goals. Gen Y workers estimate it will cost more than $3 million to achieve the “American Dream,” which, according to them, means being financially secure, having freedom and owning their home, according to The Principal.
The firm surveyed retirement plan participants between 18 and 34 years old for the report. It found that almost two-thirds of respondents said they started saving for retirement by age 25.
About 80% of millennials have — and follow — a monthly budget, and two-thirds have an emergency savings fund.
“Millennial workers are clearly growing up and taking responsibility with a passion and keen focus on their financial future,” Greg Burrows, senior vice president of retirement and investor services for The Principal, said in a statement. “In control of more than $10 trillion in assets, these workers have very quickly become an important group to watch.”
Unfortunately, while many Gen Y participants started saving early, some are a little unmoored. Almost half haven’t calculated a savings goal or even set an arbitrary one. Sixty-three percent plan to work past age 65.
Still, almost 80% are confident they’ll be better off financially when they reach their parents’ age.