While many millennials began their careers during the Great Recession, with low job prospects and high student loan debt, many are considered “super savers” who are actively saving for their futures.
Here are 10 facts about millennial saving habits from a recent Transamerica Center for Retirement Studies report, following a survey of more than 1,000 employed millennials:
1. Seventy percent of millennials started saving for retirement at age 22 (median).
2. Two-thirds of millennials expect their primary source of income in retirement to be self-funded through retirement accounts (48 percent) or other savings and investments (18 percent).
3. Four out of five (81 percent) of millennials are concerned they will not be able to rely on Social Security when they retire.
4. Sixty percent of millennials plan to retire at age 65 or sooner, including 26 percent who plan to retire at age 65 and 34 percent who plan to do so even sooner.
5. Fifty percent of millennials plan to work in retirement and, of those, nearly half (47 percent) plan to do so for reasons of enjoyment or staying involved.
6. Three out of four (76 percent) of millennials say that retirement benefits offered by a prospective employer will be a major factor in their decision on whether to accept a future job offer.
7. The majority (62 percent) of millennials who are participating in a 401(k) or similar plan are using some form of professionally managed account such as a target date fund, strategic allocation fund, and/or managed account service.
8. Three in five (61 percent) millennials want advice when saving and investing for retirement, yet only 32 percent who are saving actually use a professional financial advisor.
9. Two-thirds (68 percent) of millennials are “very” or “somewhat” confident that they will be able to someday fully retire with a comfortable lifestyle.
10. Despite the confidence-shaking events of the Great Recession, millennials’ household retirement savings dramatically increased from $9,000 in 2007 to $32,000 in 2014 (estimated medians).