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January 31, 2020 at 02:10 PM
Millennials today are saving more even as they contend with competing responsibilities and pressures, but are feeling less than optimistic about their futures.
In a survey released Thursday by Bank of America, 73% of millennials said they were saving for life milestones and future goals, a 10 percentage point increase over 2018. Twenty-four percent of those who said they were saving had set aside at least $100,000, up from 16% in 2018 and 8% in 2015.
Three-quarters of savers said they were saving for retirement, while 51% were building an emergency fund and 42% were saving to travel.
Notwithstanding these successes, 51% of millennials in the study said they felt behind in their overall financial situation, including 39% with household incomes of $100,000 or more.
“Whether age 24 or 41, millennials are facing a difficult financial balancing act as they juggle near-term priorities and future goals,” Andrew Plepler, global head of environmental, social and governance at Bank of America, said in a statement.
“Older millennials are more secure when it comes to their savings, but many others across this broad age-range still struggle to save at all. Debt remains a pressing challenge with competing pressures making it hard for people to feel financially secure.”
BofA’s survey, conducted in September using the Ipsos KnowledgePanel, comprised 1,903 respondents, ages 18 to 73.
Despite Getting It Right
The survey found that on average, millennials saving for retirement started to build their nest egg at age 24, whereas Gen Xers were 30 when they started and baby boomers were 33.
Over the past year, 39% of millennials boosted their credit score, 29% secured a raise and 24% saved more for retirement, according to the survey.
In addition, 73% said they preferred to live more frugally in order to plan for the future than “live for today” and spend money when and how they wanted.
