What You Need to Know
- Deferred student loans, fewer daily expenses and forgoing leases to move in with parents during the pandemic allowed a third of millennials to build a nest egg.
- Fifty-three percent of Gen Zers and 51% of millennials said they were more likely to get help from a financial professional.
- Despite their savings and willingness to consult an advisor, most millennials lack confidence regarding how to achieve their financial goals.
Thanks to deferred student loans during the pandemic, fewer daily expenses and forgoing leases to move in with their parents, 29% of millennials in a poll released Tuesday by New York Life report that they have built a nest egg, saving an average of $4,241.21. Moreover, more millennials now say they are open to guidance from a financial professional.
According to the poll results, the slowdown in costs was the primary driver of increased savings among younger generations, with 61% of millennials experiencing pandemic-related deferred expenses.
Of this group, 48% of millennials were able to save toward their financial goals over the past 18 months, compared with 45% of baby boomers and 41% of Generation Xers.
“Millennials, while relatively early in their careers, have already had to face two financial shocks in their lifetimes: the 2008 recession and now the COVID-19 pandemic,” Aaron Ball, head of insurance solutions, service and marketing at New York Life, said in a statement.
What Your Peers Are Reading
“While some of the deferred expenses are starting to return, younger generations have had a rare opportunity to consider their financial position and began to establish nest eggs. I’m encouraged by the degree of financial self-care and openness to hands-on professional guidance as this group begins to plan for major life events.”
The online poll was conducted in early September among a national sample of 2,300 adults.
Open to Advice
As a result of the paused expenses and savings, younger generations are more focused on their finances, with 58% respondents saying they are thinking about their finances more this year than they did last year.
Across generations, the top three long-term financial goals they reported were building emergency funds, paying off credit card debt, and being on track to retire at their desired age.
Because of this focus on achieving financial goals, in tandem with increased savings, 53% of Gen Zers and 51% of millennials said their nest-egg savings had made them more likely to consider getting help from a financial professional, compared with just 33% of all adults in the poll.
Despite their newfound savings and willingness to work with a financial professional, the majority of millennials lack confidence in knowing how to achieve their financial goals, the poll found.