Millennials are saying all the right things about financial planning and preparing for retirement, but their actions don’t match up with their words.
A new study commissioned by the Million Dollar Round Table (MDRT) and conducted by Harris Poll found millennials want to achieve many of the same traditional life milestones as their older counterparts but they are waiting later to start saving. Instead, they arefocusing on other financial priorities.
The study polled 2,000 U.S. adults aged 18 and older.
According to the findings, which are summarized in the infographic below, millennials expect to retire at age 62. This is younger than their older counterparts expect to retire. Those aged 45-54 expect to retire at 66 years old, while those aged 55-64 years old expect to retire at age 65 and those older than 65 give age 73 as their expected age of retirement.
Only 22 percent of millennials indicated they are actively saving for retirement, and only 9 percent have a financial plan for retirement. Other expenses are prioritized ahead of saving for retirement for millennials, including travel, pursuing higher education, and buying or renovating a home.
“Millennial expectations to retire at a younger age than their predecessors does not match with their lack of financial action. While most say it’s a priority to focus on planning, less than 10 percent have actually started doing so,” said Brian D. Heckert, CLU, ChFC, president of MDRT, in a release. “What they may not realize is that having a plan now can give them greater retirement savings and increased financial security during those golden years.”