Millennials are a “generation lost,” according to a new study, and are in for a tough time when they finally reach retirement, thanks to a lack of understanding of financial matters as much as a lack of interest.
The study, titled “Generation Lost: Engaging Millennials with Retirement Saving,” from BNY Mellon and a team of students from Cambridge Judge Business School, University of Cambridge, found that millennials internationally will have a more difficult time in retirement because of demographic, political, and macroeconomic trends.
Nearly half — 46 percent — of millennials aren’t getting any information on financial matters, either through the workplace or through the education system.
In addition, 51 percent are calculating what they’ll need in retirement via a “blind guess” rather than anything actually resembling calculations.
Industry data didn’t enter into their assumptions. Another 39 percent have settled on a number via an “educated guess.”
Sixty-three percent said they’d save more if their pension allowed multiple lifetime withdrawals. The most important life events for which millennials would want access to cash through such a product are the need to put a down payment on a house (49 percent) or being faced with the expenses of a major illness (48 percent).